The IHS Markit Purchasing Managers Index (PMI) edged up to 48.7 last month from 48.5 in July, remaining clearly below the 50 mark that separates growth from contraction.
A Reuters survey of six analysts had pointed to a reading of 48.5 in August.
IHS Markit said its sub-index for new orders at manufacturers dropped to 46.0 from a previous 47.8.
The euro zone's third-largest economy has been broadly stagnant since the second quarter of last year, maintaining its customary position among the most sluggish performers in the 19-nation currency bloc.
Gross domestic product was flat between April and June, quarter-on-quarter, and declined 0.1% on a year-on-year basis, data showed on Friday.