PMI index nudges positive territory

Reading for April best this year as exports rise

Manufacturing output and new orders picked up in April according to the most recent Markit/Purchasing Managers' Index of engineering firms' prospects.

The headline reading of the Markit/PMI index was 49.8 for April – just below the 50 level which separates growth from contraction. This followed lows of 47.9 in February and 48.3 in March.

The improved PMI is a further boost for the government in the wake of GDP figures last week which showed the country avoided a triple-dip recession with growth of 0.3% in the first quarter.

Levels of production and new orders rose slightly after contracting in the prior two months, with output growing in some areas and the rate of contraction easing back in others, the Markit/PMI survey said.

Manufacturing job losses were recorded for the third straight month in April but the overall rate was less than in the previous two, according to the data.

David Noble, chief executive at the Chartered Institute of Purchasing and Supply, said: "A march of the makers may be on its way following the first rise in export sales for a year with the Americas, Middle East and Australia making up for lacklustre demand in Europe, giving the manufacturing sector something to savour."

But he said the sector was not in "rude health" and that "tough times will undoubtedly continue".

"Businesses remain cost cautious, but the latest figures are a chink of light in the tunnel," he added.