Sterling remains near a record low against the euro this evening after more bleak manufacturing and housing figures fuelled fears of a UK recession.
The euro had hit a record high of 81.39p against the UK currency in Asian trading after British Chancellor Alistair Darling said at the weekend that the country's economic downturn might be the worst in 60 years. It was just above 81p this evening.
This morning, a survey showed that the UK's manufacturing sector shrank for the fourth consecutive month in August. The CIPS/Markit purchasing managers' index registered 45.9 last month. A reading below 50 signals contraction.
The index crept up from 44.1 in July, which was the lowest reading since the series began nearly a decade ago. The rise was put down to firms using the spare capacity available from previously depressed levels.
Manufacturers reported falling volumes of new orders and output levels last month - albeit at a slower rate than in July - while the sector also saw job losses for the fifth month in a row.
Meanwhile, the number of mortgages approved for people buying homes in the UK dived by 71% during the past year to hit a new record low.
Just 33,000 mortgages were approved for house purchase during July - 6% fewer than in June, and down from 114,000 in July last year, according to the Bank of England.
