In October, UK industrial production dropped by 0.7% M/M, twice as much as ex-pected. On an annual basis, UK production is down by 1.7% Y/Y, while only a de-cline by 0.7% Y/Y was expected. The details show that weakness was based in the manufacturing sector (-0.7% M/M), while production of mining & quarrying (1.8% M/M) and oil & gas (2.7% M/M) picked up in October. This outcome is clearly dis-appointing and indicates that the UK manufacturing sector started the fourth quarter on a weak footing. Consumer- and business confidence are weak in the UK, which is weighing on domestic consumption and investments. In addi-tion, Britain’s main trading partners, the euro zone countries are suffering too, which is pushing exports down too.