* Factory sector growth picks up speed in April
* Periphery members still struggling
* Survey shows factories raising prices
By Jonathan Cable
LONDON, May 2 (Reuters) - The euro zone's manufacturing sector kept its foot firmly on the accelerator last month and factories continued to ramp up their prices, a business survey showed on Monday.
The Markit Eurozone Manufacturing Purchasing Managers' Index (PMI), which records manufacturing activity across all the major euro area economies, rose to 58.0 last month from March's 57.5. The index hit a near-11 year high of 59.0 in February.
The figure was revised up from a flash reading of 57.7 and marked the index's 19th month above the 50 mark dividing growth from contraction.
The euro zone manufacturing PMI output index rose to 60.2 from the previous month's 58.5 and the flash estimate of 60.0.
"Euro zone manufacturers reported that the growth surge continued into April, meaning 2011 has so far seen the best start to a year since the dot-com boom of 2000," said Chris Williamson at Markit.
But the bounce was once again driven by Germany, Europe's largest economy, and France whose growth overshadowed a continued slide to stagnation in Spain and a persistent contraction in Greece.
"The two disappointments were the near-record increase in manufacturers' selling prices, which will fuel inflationary concerns among policymakers, and the growing divergence between the performances of the core and periphery," Williamson said.
The output price index dropped from March's survey high of 61.5 to 61.0, revised up from a flash reading of 60.7.
Official flash data released on Friday showed consumer prices rose 2.8 percent in April, up from March's 2.7 percent and above expectations for 2.7 percent.
The figures will bolster those policymakers at the European Central Bank who believe the strong recovery in Europe's core economies calls for more monetary tightening before price rises become entrenched, even while weaker euro zone states remain engulfed in the debt crisis.
The ECB was the first of the big four central banks to raise rates when it upped them by 25 basis points from a record low of 1.0 percent earlier this month but is not seen making its next move until July.
(Editing by Toby Chopra)