THE UK manufacturing sector achieved further growth in May, following marginal expansion in April, a survey has shown.

And the survey, published yesterday by the Chartered Institute of Purchasing and Supply (CIPS) and financial information company Markit, signalled a slight increase in overall employment in UK manufacturing, following three consecutive months of decline.

CIPS's purchasing managers' index (PMI) for manufacturing – a composite measure of activity that includes output, new orders, employment, suppliers' delivery times and stocks of goods purchased – rose from 50.2 in April to a 14-month high of 51.3 in May on a seasonally adjusted basis.

With April's reading revised upwards, this index has now been above 50, the level calculated by CIPS to separate expansion from contraction, for two consecutive months, having stood at 48.2 and 49 respectively in February and March.

CIPS had last month put the PMI for April at 49.8, signalling a third straight month of contraction in overall manufacturing activity. The April reading was revised up to 50.2 in yesterday's figures.

CIPS's UK manufacturing output sub-index rose from 51.1 in April to 53.8 in May.

The survey also signalled faster growth of new orders for UK manufacturers last month. New export orders meanwhile rose for a second consecutive month, although the rate of increase slowed.

Samuel Tombs, UK economist at consultancy Capital Economics, said: "May's CIPS/Markit report on manufacturing provided a tentative indication the industrial sector's recession might be drawing to a close."

He calculated that CIPS's output index reading of 53.8 was consistent, on the basis of past form, with quarterly growth in manufacturing output of about 0.5%.

Mr Tombs said: "Whereas previous improvements in the CIPS survey have often reflected the impact of temporary factors, such as the boost to output in the month following a period of disruptive weather, May's readings seem to be an entirely genuine reflection of the underlying strength of demand."

He added: "Admittedly, we would caution against excessive optimism. Moreover, with the eurozone still in recession, the weakness of external demand will remain a significant brake on any recovery in the manufacturing sector.

"Nonetheless, May's CIPS survey is a tentatively encouraging sign the manufacturing sector may start to play a small part in the overall economic recovery."

Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "The survey is broadly encouraging, suggesting manufacturing activity is on course for clear growth in the second quarter. This would be a real boost to overall growth hopes for the second quarter as manufacturing output contracted by 0.3% quarter-on-quarter in the first quarter, following a pretty torrid 2012."

Rob Dobson, senior economist at survey compiler Markit, said: "The UK manufacturing sector had a spring in its step in May, as a brightening domestic market led to faster growth of output and new orders."

He noted producers of consumer, intermediate and investment goods had all reported stronger output growth.