The manufacturing sector in Britain took a turn for the worse in May, according to a Markit/CIPS market survey issued on Friday.

The sector's purchasing managers index (PMI) declined to 45.9 in May from 50.2 in April, the lowest in three years. A PMI reading above 50 denotes growth, while a reading below 50 suggests contraction.

The drop in PMI is attributed to a record drop in new orders since March 2009 and cutbacks in output, employment, purchasing and inventories by manufacturing firms.

The PMI index fell 4.3 points in May, the second-steepest fall in its 20-year history.

The industrial sectors worst affected included chemicals and plastics, electrical, mechanical engineering, textiles and clothing, and transport.

The report said manufacturers indicated market conditions were especially tough in mainland Europe, but also noted reduced orders from the U.S. and Asia.

Job losses were reported for the first time in five months in May, mainly reflecting lower levels of output and new orders.

Manufacturing production contracted for the first time in six months in May. Companies in the sector indicated that lower output reflected weaker global economic conditions, rising competition and a subdued domestic market, said the report.

Rob Dobson, senior economist at Markit, said: "Barring a sharp turnaround in June, manufacturing output could fall by as much as 1 percent in the second quarter, making the sector a drag on the broader economy and raising the risk of the recession extending into mid-year.

"However, with price pressures easing further in May, there may be a window of opportunity if the Bank of England wants to give industry a monetary shot in the arm," he added.