Story highlights Eurozone manufacturing contracted for the 13th consecutive month in August.

The eurozone manufacturing decline was led by a sharp drop in new orders.

The figures contrasted with more encouraging manufacturing numbers from the UK.

Eurozone manufacturing contracted for the 13th consecutive month in August, as exports in Germany, the bloc's main engine of growth, fell at the steepest rate in three years, according to a purchasing managers' index.

The Markit manufacturing PMI for the 17-country euro bloc was revised to 45.1 from the initially estimated 45.3. Although above July's 37-month low of 44.0, it still remained significantly below the 50 mark, which indicates a contraction.

The figures contrasted with more encouraging manufacturing numbers from the UK, also released on Monday, which showed a bounce to 49.5 from 45.2 in July. But Markit, which compiles the data, emphasised a grim underlying picture for the country's manufacturing sector, while disappointing PMI data from China at the weekend pointed to a more serious downturn than Beijing had been anticipating, economists said.

Analysts said although the eurozone's PMI rate of decline was easing, eurozone gross domestic product was likely to contract in the third quarter, which would mark the euro region's second recession in three years. GDP for the single-currency area shrank 0.2 per cent in the second quarter.

"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," said Rob Dobson, an economist at Markit.

The eurozone manufacturing decline was led by a sharp drop in new orders, which fell for the 15th consecutive month, and exports, including intra-eurozone, in a clear sign that the sovereign debt crisis afflicting Europe is slowing down the global economy.

Germany's manufacturing PMI rose to 44.7 in August from 43 the previous month, but worsening global economic conditions dragged exports down at the fastest pace since April 2009, indicating that Europe's largest economy is suffering from the recession in the eurozone periphery.

Italy's manufacturing PMI suffered most, as industrial activity dropped to a 10-month low, down to 43.6 from 44.3 in July, suggesting that the recession in the sector is deepening, according to Markit.

Spain, Greece and Ireland -- three of the eurozone's most troubled economies -- showed some signs of improvement, as industrial activity rose to 44, 42.1 and 50.9 respectively.

Economists said there was little reason to cheer, however, as recent rising unemployment data highlighted how tough austerity measures were taking a toll on economic growth.

"Eurozone manufacturers are clearly still finding life extremely difficult amid ongoing very challenging conditions," said Howard Archer, European economist at Capital Economics. "Domestic demand is being handicapped by tighter fiscal policy in many eurozone countries, limited consumer purchasing power, and high and rising unemployment."

Unemployment in the eurozone hit a fresh high in July at 11.3 per cent, as 18m people were jobless, the highest number since the launch of Europe's monetary union in 1999.

Worsening manufacturing conditions, coupled with record unemployment as well as negative growth, will add pressure on the European Central Bank to cut rates at its highly anticipated monetary policy meeting this week, said Mr Archer.