LONDON, July 24 Reuters The pound headed for a seventh straight day of losses on Monday against the dollar, its longest losing streak since the onset of the pandemic in 2020, after a survey showed Britain39;s private sector growing at its slowest pace in six months in July.

The SP GlobalCIPS composite Purchasing Managers39; Index showed a preliminary reading of 50.7, down from 52.8 in June in the biggest monthonmonth drop in 11 months.

Although above the 50level that separates growth from contraction, it was the weakest reading since January.

Sterling was last down 0.2 on the day at 1.2827 having touched a session low earlier of 1.2808 after a preliminary survey of UK business activity showed a downturn in British manufacturing deepened, while the service sector also slowed.

Rising interest rates and the higher cost of living appear to be taking an increased toll on households, dampening a postpandemic rebound in spending on leisure activities said Chris Williamson, chief business economist at SP Global, which produces the data.

Meanwhile, manufacturers are cutting production in response to a worryingly severe downturn in orders, both from domestic and export markets, he said.

The pound has fallen for seven days in a row against the dollar, its longest losing streak since midMarch 2020.

Rate expectations in Britain have fluctuated wildly this month. Two weeks ago, money markets showed traders believed UK rates would peak at around 6.2 by next June.

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