Global factory growth at two-year low - PMI

LONDON (Reuters) - Global factory activity expanded at its weakest pace in just over two years last month, even though discounted prices did drive a modest upturn in new orders, a business survey showed on Tuesday.

JPMorgan's Global Manufacturing Purchasing Managers' Index (PMI), produced with Markit, sank to its lowest reading since July 2013 last month, coming in at 50.7 compared to July's 51.0.

August was the 33rd month the index has been above the 50 level that separates growth from contraction. But a sub-index measuring prices charged held below 50, registering 49.7, only slightly above July's 49.5.

"The August PMI surveys suggest that conditions in the global manufacturing sector remain relatively lacklustre, with growth staying stubbornly below its long-run trend," said David Hensley, a director at JPMorgan.

The global PMI combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.

(Reporting by Jonathan Cable, editing by Larry King)