The UK manufacturing industry declined at its lowest rate for over a year in May, according to data released by The Purchasing Managers' Index (PMI).

The PMI rose to 45.4 in May, up from 43.1 in April - the highest figure since May last year and the third consecutive month of improvement in the PMI index. Although any figure on the index below 50 represents contraction in the industry, there are hopes that the worst is over for the manufacturing sector.

A separate report, issued by the Engineering Employers Federation (EEF), said that it expected the pace of decline in the sector to ease markedly in the next three months and that growth could return by the end of the year.

"Members say there has been a pick up in new enquiries and there are hopes this will be translated into firm orders," said Lee Hopley, EEF's head of economic policy.