LONDON (AP) — Britain's pound fell to a new record low against the euro yesterday for the second consecutive day as fears grew about the strength of the British economy.

The British currency dropped to 1.1250 euros — the weakest it has ever been against Europe's shared currency since the euro was launched in 1999.

The record low comes after fresh employment and manufacturing data provided yet more evidence that Britain's economy is contracting. The Confederation of British Industry said that manufacturers' production expectations for the coming three months were hovering at 28-year lows.

Meanwhile, recruitment firm Morgan McKinley's monthly employment monitor showed that the number of new job vacancies in London's financial services market was 59 percent lower in November than it was in the same month last year.

The pound's dive against the euro has also been caused by the Bank of England's recent sharp cuts in interest rates — a move that can weaken demand for a country's currency by reducing the yield on interest-bearing investments.