STERLING has sustained further losses against the euro on the back of economic indicators which have signalled a sharp slowdown in UK growth.

The euro was, at 5pm in London, trading around 74p, up by 0.2p on its corresponding Monday evening level.

A survey from the Chartered Institute of Procurement & Supply (CIPS) on Monday revealed that growth of the UK’s dominant services sector had slowed to its weakest pace in two-and-a-half years in September.

A survey published by CIPS last week showed that the UK manufacturing sector experienced one of its weakest quarters in the last two years during the three months to September.

In contrast to its fortunes against the euro, the pound made ground against a struggling dollar.

The US currency came under pressure as growing doubts over the strength of the global recovery raised questions over when the Federal Reserve might be able to raise benchmark interest rates in the world’s largest economy.

Sterling was, at 5pm, trading around $1.5227, up about 0.6 cents on its close in London on Monday.

Chris Williamson, chief economist at CIPS survey compiler Markit, said the survey data indicated that UK gross domestic product growth slowed to 0.5 per cent in the third quarter.

He added that the data also pointed to the economy entering the final three months of the year at a quarterly pace of growth of just 0.3 per cent.