UK manufacturing output last month fell into contraction territory, according to the latest purchasing managers index (PMI) survey from S&P Global/CIPS, though not as badly as expected.
The manufacturing PMI came in at 49.1, up from 50.3 in the previous month and 48.7 in the mid-month ‘flash’ estimate.
A PMI reading below 50 signifies an industry in contraction.
The sector showed renewed signs of weakness at the start of the second quarter, said S&P Global, due to weak market confidence and disruption caused by the Red Sea shipping lane closure.
"The UK manufacturing sector suffered a renewed downturn in April, as output and new orders contracted following short-lived rebounds in March," said Rob Dobson, director at S&P Global.
Input price inflation rose to a 14-month high, which he said is "worrisome for those looking for a sustainable path back to target (consumer price) inflation, with cost pressures growing in industry and feeding through to higher selling prices at the factory gate".
The manufacturing sector is "still besieged by weak market confidence, client destocking and disruptions caused by the ongoing Red Sea crisis, all of which are contributing to reduced inflows of new work from domestic and overseas customers, with specific reports of difficulty securing new contract wins from Europe, the US and Asia," he said.