PARIS, Sept 1 (Reuters) - Activity in France's factories picked up for the first time in 15 months in August helped by a jump in new orders, a survey of purchasing managers showed on Tuesday, raising hopes for third quarter economic growth.
The Markit/CDAF final manufacturing purchasing managers' index rose to 50.8 from a final reading of 48.1 in July.
It was the first time since May 2008 the index had broken through 50 -- the level separating growth from contraction.
"The recovery in France's manufacturing sector gained traction in August. The protracted decline in finished goods stocks sets the stage for further solid gains in production as new orders and backlogs rise," Markit economist Jack Kennedy said in a statement.
"The protracted decline in finished goods stocks sets the stage for further solid gains in production as new orders and backlogs rise."
The economy grew by a surprise 0.3 percent in the second quarter of the year and economists are looking for signs that it will do better than forecast in the third quarter.
A Reuters poll of economists carried out in July before the second quarter data was released found they expected growth of just 0.1 percent between July and September.
The Markit survey found new orders had jumped to 53.8 in August from 51.3 in July, the highest since January 2008.
"Stabilising demand may also start to benefit manufacturers' pricing power - the latest drop in output prices was the slowest in eight months," Kennedy said.
French factories have been hit hard by the financial crisis with many being forced to shut down or halt production until demand improves, but there have been recent signs that the outlook has brightened.
Car maker PSA Peugeot Citroen said on Wednesday that total car demand in the second half of the year would fall less than expected.
The car sector has been helped by a government scrapping scheme to support the industry through the financial crisis.
The government has warned that unemployment will continue to rise despite signs that the worst is over for the economy.
French factories shed jobs for the sixteenth consecutive month in August although the rate of decline eased. (Reporting by Anna Willard; Editing by Andy Bruce)