Markit's Eurozone Manufacturing Purchasing Managers Index (PMI) was at 45.1 points in August, up from July's 37-month low of 44 points and below the earlier flash estimate of 45.3.
Considering the PMI at 50 points means stability in the manufacturing sector, the index has now signalled a contraction for 13 consecutive months. Business conditions deteriorated in the vast majority of the national manufacturing sectors covered by the survey with the sole exception of Ireland. Modest contractions were seen in the Netherlands and Austria, but production continued to drop sharply in the other nations covered by the survey - including the big four of Germany, France, Italy and Spain.
The level of incoming new export orders declined for the fourteenth month running in August, with the rate of contraction the steepest since November 2011. The steepest drops in new export business were registered in Germany and Greece, the fastest since April and January 2009 respectively.
Chris Williamson, chief economist at Markit, said, "The ongoing weakness is unsurprising given that eurozone manufacturers and their clients are still in a largely defensive mode. The uncertainty and cost caution resulting from the currency union's ongoing political and debt crises are now being reinforced by softer global economic growth. The broader long-run issue is that the eurozone product and labour markets are unlikely to show any real sustained improvement until regional structural issues are addressed and the broader global backdrop brightens."