By contrast, data from Germany, Europe's biggest economy, showed factories there had their best month since mid-2011.

Both showed factories continued to cut staff.

The survey showed factories in Germany and France are succumbing to a downturn that started in southern Europe.

The survey showed factories across the currency area hired staff at the quickest rate since March 2008 last month.

Almost all the surveys out Tuesday showed factories and service companies continued cutting prices in June to attract new business.

Other forward looking indicators showed factories reduced purchases of raw materials for a second month and cut back on hiring.

The survey showed factories cut production in August, with the sub-index measuring output falling to its lowest since early 2009.

Separate ONS data showed factories' costs falling while the prices they charge rose at a slower pace than expected last month.

Manufacturing surveys last week showed factories continued to enjoy strong price gains, while demand remained strong with big increases in new business.

In Asia's fourth-largest economy, South Korea, the PMI showed factories suffered their first drop in business in five month after export orders fell.

Japan's flash PMI showed factories and exports remained subdued in July, though service activity expanded at the fastest pace in almost two years.

Expectations are for a number close to the flash PMI last week at 49.1, when it showed factories posted their best performance this year.