| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | United Kingdom | Manufacturing Production (YoY) | October | 3% | 1.9% | 0.8% |
| 07:00 | United Kingdom | Industrial Production (YoY) | October | 1.5% | 1.1% | 0.4% |
| 07:00 | United Kingdom | GDP m/m | October | 0.2% | -0.1% | -0.3% |
| 07:00 | United Kingdom | GDP, y/y | October | 1.3% | 0.6% | 0.3% |
| 10:00 | Eurozone | Industrial Production (YoY) | October | -6.8% | -4.5% | -6.6% |
GBP fell against its major rivals in the European session on Wednesday as data showed an unexpected decline in the UK economy in October.
The Office for National Statistics (ONS) reported Britain’s gross domestic product (GDP) shrank by 0.3% month-on-month (MoM) in October, following a 0.2% MoM advance in the previous month. This marked the first contraction in three months and was worse than economists' forecast of no change. Output declined across all major industries, including services (-0.2% MoM), production (-0.8% MoM), and construction (-0.5% MoM). In the three months to October, the UK GDP showed no growth compared to the three months to July.
A separate report revealed the UK’s trade deficit widened more than anticipated in October, to GBP17.03 billion from GBP14.29 billion in September. This was larger than the economists' expected figure of GBP14.30 billion, representing the largest trade shortfall in five months.
Following the latest data, markets have increased their bets on a rate cut from the Bank of England. Bloomberg notes that they are now close to pricing in four rate decreases for the first time.