British industrial production drops sharply in October

British industrial production posted the biggest monthly fall in more than four years in October after the temporary shutdown of the UK's largest oilfield. According to the Office for National Statistics, industrial output declined 1.3% in the reported month, following September's drop of 0.4% and falling behind the 0.2% rise market forecast. That was the largest decline since September 2012, when the Buzzard oilfield, the biggest in the UK North Sea, was also closed for lengthy maintenance. On a yearly basis, industrial production decreased 1.1% in October, the largest contraction since August 2013. In the meantime, the country's manufacturing output declined 0.9% on a monthly basis over the period after rising 0.6% in September, while markets anticipated a slight decrease to 0.2%. Nevertheless, the UK economy has so far performed better than expected since the Brexit vote. According to the Bank of England's latest forecasts, the economy is set to expand 1.4% in 2017, compared to a 2.2% growth registered in 2016. Moreover, the Central bank forecasts a threefold increase in inflation next year. Currently, the UK inflation rate is 0.9%. After the release, the GBP/USD pair was seen trading below $1.2600, while the EUR/GBP pair rose above 0.8500.