Sterling slips as UK factory data misses forecasts

LONDON: Sterling slipped against the dollar and trimmed earlier gains against the euro on Tuesday, after data showed British factories suffered their weakest month in almost three years in February as demand at home slowed and exports fell.

The Markit/CIPS manufacturing Purchasing Managers' Index (PMI) fell sharply to 50.8 from 52.9 in January, below all forecasts in a Reuters poll, and not far from the 50-level that separates growth from contraction.

Sterling fell to the day's low of $1.3909 after the numbers were published, down from $1.3945 beforehand, before recovering to $1.3920, flat on the day.

Against the euro, sterling weakened to 78.05 pence , from 77.95 pence per euro before the data but leaving it still up 0.1 percent on the day.