(Alliance News) - The UK manufacturing sector fell into contraction in April, flash purchasing managers' index survey results showed Tuesday.

The headline seasonally adjusted S&P Global flash UK PMI composite output index edged up to 54.0 points in April from 52.8 in March. The reading indicates an expansion of growth, rising further above the 50.0 no-change mark.

This marks an 11 month high, S&P said.

The flash UK services PMI business activity index edged up to 54.9 from 53.1. This was ahead of FXStreet market consensus of 53.0.

However, the flash UK manufacturing PMI fell to 48.7 from 50.3. Markets were expecting the figure to not change.

Lower output levels were often linked to weak market conditions and customer destocking in line with reduced demand, S&P explained.

Looking ahead, S&P said business activity expectations for the next 12 months remained "upbeat" in April, with the degree of optimism higher than at any time in 2023.

"Early PMI survey data for April indicate that the UK economy's recovery from recession last year continued to gain momentum. Improved growth in the service sector offset a renewed downturn in manufacturing to propel overall business growth to the fastest for nearly a year, indicating that GDP is rising at a quarterly rate of 0.4% after a 0.3% gain in the first quarter," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"The upturn encouraged firms to take on workers in increased numbers which, alongside April's rise in the National Living Wage, drove cost pressures sharply higher. Although selling price inflation cooled slightly, the upturn in costs alongside solid demand suggests firms may seek to raise prices in the coming months."

The composite PMI is compiled by S&P Global from responses to questionnaires sent to survey panels of around 650 manufacturers and 650 service providers in the UK. Responses were collected between April 11 and 19.

By Sophie Rose, Alliance News senior reporter

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