THERE was hope for recession-hit manufacturers last night, as a survey suggested they may be “close to turning the corner.”

The Chartered Institute of Purchasing and Supply’s (Cips) activity index posted a reading of 45.4 last month, still below the neutral mark of 50 but an improvement on the 43.1 seen in April and its highest level for a year.

It prompted Cips to predict that industry output would stem its decline and stabilise by the autumn. A score over 50 on the index would signal a return to growth.

Roy Ayliffe, director at Cips, said: “UK manufacturing looks like it may be close to turning the corner as the May index posted its strongest reading in 12 months.

“At this rate, we would hit the no-change 50.0 index benchmark by autumn – significantly earlier than economists initially predicted.

He noted that new export orders declined for the 14th successive month in May – and at a faster rate than in April – while domestic orders grew, suggesting that the UK could be recovering faster than its overseas markets.

Jobs continued to be lost in the sector for the 14th month in a row, although the rate slowed to its least severe since last October.