Weak data pushes sterling to 2-1/2 month low vs dlr

LONDON, May 7 (Reuters) - Sterling fell to a 2-1/2 month low versus the dollar on Wednesday with weak consumer morale and jobs figures keeping investors focused on a sharply slowing UK economy and the prospect of more interest rate cuts.

British consumer morale fell in April to its lowest since records began four years ago, data released earlier from the Nationwide Building Society showed [ID:nL06938733].

Further evidence of a weakening economy came in a survey showing the number of permanent job placements in Britain fell for the second time in three months in April as growth in vacancies for permanent staff languished at its weakest since mid 2003.

"I have no problem with the argument that the UK economy is destined to have a hard time," said Simon Derrick, head of currency research at Bank of New York Mellon.

"Recent housing data and the consumer confidence data mean that we are all aware of where the UK economy is going."

By 0754 GMT, the pound had fallen almost 0.6 percent to $1.9622 <GBP=>, having earlier hit $1.9594, its lowest since late February. The euro was up 0.3 percent at 78.94 pence <EURGBP=>.

The Bank of England's monetary policy committee kicks off its two-day policy meeting on Wednesday, with most analysts polled by Reuters expecting interest rates to stay on hold at 5 percent, while 40 of 65 predict a cut will come in June [BOE/INT].

Policymakers and investors will get more evidence on the health of the UK economy at 0830 GMT when manufacturing and industrial output data are released.

(Reporting by Simon Falush; Editing by Ruth Pitchford)