Sterling slumps as industry grows at slowest pace in two years

Sterling tumbled a cent against the dollar earlier today on surprise news Britain's manufacturing sector grew at its slowest rate for two years in May, sparking fresh fears about the economic recovery.

Weak domestic demand led to a drop in production and new orders, according to a survey by Markit Economics and the Chartered Institute of Purchasing and Supply. The gauge suggested a decline to 52.1 by its measure, the lowest since September 2009, from a downwardly revised 54.4 in April. Producers of consumer goods and smaller manufacturers were hit hardest, the survey said. The surprise dip in activity caused the pound to tumble almost a cent against the dollar. Sterling was down 0.17% against the Greenback and 0.25% down against the euro at 12.45pm. Chancellor George Osborn...