The U.K. factory activity shrank unexpectedly in April, for the first time in three years, signaling that the manufacturing sector entered the second quarter on a poor footing amid "Brexit" fears.

The Chartered Institute of Procurement & Supply Purchasing Managers' Index for the manufacturing sector fell unexpectedly to 49.2 in April from a revised 50.7 in March, survey published by Markit showed Tuesday.

The measure was forecast to rise to 51.2 from March's originally estimated value of 51. The reading fell below the critical no-change mark of 50.0 for the first time since March 2013.

The headline index was dragged lower by lackluster trends in production and new orders and declines in both employment and stocks of purchases.

"On this evidence manufacturing production is now falling at a quarterly pace of around 1 percent, and will likely act as a drag on the economy again during the second quarter and putting greater pressure on the service sector to sustain GDP growth," Rob Dobson, a senior economist at survey compilers Markit, said.

The survey's weakness will no doubt be attributed to uncertainty surrounding the EU referendum, Paul Hollingsworth at Capital Economics, said. However, the economist cautioned against attributing too much of the recent weakness to "Brexit" jitters.

Hollingsworth continues to think that things will improve for UK manufacturers later this year.

Companies attributed the deterioration in operating conditions to softer growth of domestic demand and a reduction in new business from overseas. New export orders fell for the fourth straight month in April.

There were also a few reports that uncertainties regarding the oil and gas industry, retail sector and the upcoming EU referendum had led some clients to delay spending, Markit said.

Job cuts were reported for the fourth consecutive month, with the rate of decline the fastest since February 2013.

On the price front, survey showed that average input costs fell at the slowest pace since June 2015, while the rate of decline in selling prices was only marginal.

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