LONDON, March 2 (Reuters) - Global manufacturing activity contracted at a slower pace in February helped by tentative signs of stabilisation in the U.S., but factories slashed jobs at the fastest pace in at least 11 years, a survey showed on Monday.
The global index, produced by JP Morgan with research and supply management organisations, rose to 35.8 in February from 35.0 in January. That was still well below the 50.0 mark that divides growth from contraction.
Earlier data showed U.S. factory activity stabilised at very low levels in February, beating economists' predictions for another steep decline. However, the euro zone's manufacturing sector contracted at its fastest pace in at least 12 years.
"The data are still pointing to marked declines in output and new orders, but the gains in these indices indicate that the rate of contraction has begun to ease in global industry," said David Hensley at JP Morgan.
But the survey also showed that manufacturers slashed jobs in the last month as a recession tore into demand. The employment sub-index fell to 34.9 in February from 36.4 the previous month, the lowest in the survey's 11-year history.
The index combines survey data from countries including the United States, Japan, Germany, France, Britain, China and Russia.