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UK auto market data showed a mixed picture in October. Year-on-year car registrations grew 0.5%, but this marks a steep slowdown from the previous 13.7% surge. On a monthly basis, registrations plunged 53.7%, reversing the prior month’s exceptionally large 277.4% jump. The sharp MoM swing reflects normalization after unusually volatile seasonal and supply-related factors.

Market impact: Mildly negative for GBP; weaker registration momentum hints at softer consumer demand and cooling auto-sector activity.

The UK’s November PMI readings showed a loss of momentum across the economy, with all major indicators coming in below expectations. The Composite PMI fell to 50.5, missing the forecast 51.8 and down from 52.2, pointing to slower overall activity.

The Services PMI dropped to 50.5, well below expectations of 51.9 and the prior 52.3, indicating easing growth in the sector that has been driving recent economic resilience. Manufacturing PMI edged up to 50.2, slightly above the expected 49.3 and the previous 49.7, but the improvement was modest and still reflects subdued factory conditions.

Overall, the data shows cooling momentum in the UK economy as services soften and manufacturing remains weak.

Market impact: Mildly negative for GBP; softer PMIs reinforce concerns over slowing economic activity.

France’s economic activity showed signs of recovery in November as PMI readings improved across all major sectors. Manufacturing PMI rose to 47.8, slightly below the expected 49.0, but still better than 48.8 previously, indicating a slower pace of contraction.

The Services PMI moved back into expansion at 50.8, beating expectations of 48.4 and up from 48.0, marking the strongest improvement in months. The Composite PMI climbed to 49.9, sharply higher than the forecast 48.1 and previous 47.7, suggesting the French economy is edging toward stabilization.

Overall, the data points to easing economic weakness, driven primarily by a rebound in services activity.

Market impact: Mildly positive for EUR; stronger PMI readings support sentiment toward France and the broader Eurozone.

UK retail sales fell 1.1% MoM in October, a much steeper decline than the expected –0.1% and a sharp reversal from the prior 0.7% increase. On a yearly basis, sales slowed to just 0.2% YoY, well below expectations of 1.5% and the previous 1.0%, signaling a clear loss of momentum in consumer spending.

The downturn reflects pressure from high interest rates, softening real incomes, and persistent cost-of-living strains—factors that continue to weigh heavily on household demand heading into the peak holiday season.

Market impact: Mildly negative for GBP; weak retail activity reinforces concerns over a cooling UK economy.

The UK’s public finances deteriorated in October, with Public Sector Net Borrowing rising to £17.43B, above expectations of £15.20B, though lower than the previous £19.89B. The increase highlights continued fiscal strain from higher debt-servicing costs and elevated public spending.

The Public Sector Net Cash Requirement swung sharply to £20.825B, compared with a –£10.782B surplus previously, reflecting significant cash outflows during the month.

Overall, the data underscores ongoing budgetary pressures as the government balances weak economic growth, rising welfare costs, and higher interest payments.

Market impact: Mildly negative for GBP; higher-than-expected borrowing reinforces concerns over the UK’s fiscal outlook.

UK core retail sales fell 1.0% MoM in October, a steep decline compared with expectations of –0.2% and a sharp reversal from the prior 0.7% increase. On an annual basis, core retail sales slowed to 1.2% YoY, well below the expected 2.5% and the previous 1.7%.

The data signals weakening consumer demand heading into year-end, pressured by high borrowing costs, soft real incomes, and persistent cost-of-living constraints.

Market impact: Mildly negative for GBP; softer retail activity underscores a weakening domestic demand backdrop.

The UK’s CBI Industrial Trends Orders index fell to –37 in November, below expectations of –33 and close to the prior –38, signaling ongoing weakness in manufacturing demand. The data reflects softer order books and continued pressure on the sector amid high costs and subdued global demand.

Market impact: Mildly negative for GBP; weaker industrial orders reinforce concerns over the UK’s sluggish manufacturing outlook.

The UK’s latest 10-year Gilt auction cleared at a yield of 4.608%, down from 4.769% previously. The decline reflects stronger demand for UK government debt as investors position defensively amid cooling inflation and a softer economic outlook.

Market impact: Mildly positive for GBP rates; lower yields signal firm demand but also underline expectations of weaker growth.

UK house prices rose 2.6% YoY, easing from the previous 3.0% and below expectations of 3.0%, signalling a continued cooling in the housing market. Higher mortgage rates and softer buyer demand remain key drags on price momentum as affordability pressures persist.

Market impact: Mildly negative for GBP; softer house price growth reinforces expectations of a subdued property market.

UK retail price inflation softened in October, with RPI (YoY) easing to 4.3%, down from 4.5%, and matching expectations. On a monthly basis, RPI rose 0.3%, in line with forecasts and a rebound from the prior -0.4% reading.

Core RPI showed a similar trend: annual core inflation slowed to 4.2% from 4.4%, while monthly core RPI increased 0.3%, recovering from the earlier -0.4% decline.

The data highlights continued cooling in retail price pressures, aligning with broader easing in UK inflation indicators.

Market impact: Mildly negative for GBP; softer RPI reinforces expectations of gradually easing inflation.

UK producer price data for October showed a mixed inflation profile. Core PPI Output rose 0.1% MoM, matching forecasts, while annual core output inflation held steady at 3.5%.

Input prices fell 0.3% MoM, reversing the previous 0.0% and coming in below expectations, contributing to softer cost pressures for producers. On an annual basis, PPI Input slowed to 0.5%, down from 0.7%.

Headline PPI Output was flat 0.0% MoM, slightly softer than the expected 0.1%, while annual output prices rose 3.6%, marginally above the prior 3.5%.

Overall, the data indicate easing input cost pressures but stable output inflation, suggesting that producer-side price pressures remain contained.

Market impact: Neutral for GBP; weak input costs reduce upstream inflation concerns, while steady output inflation offers little directional signal.

UK inflation slowed in October, with headline CPI easing to 3.6% YoY from 3.8%, though still slightly above expectations of 3.5%. On a monthly basis, CPI rose 0.4%, matching forecasts and rebounding from the previous 0.0% reading.

Core CPI moderated to 3.4% YoY, down from 3.5%, while core prices increased 0.3% MoM, softer than the expected 0.4%, yet higher than the prior flat reading. The CPI index (n.s.a) increased to 139.80 from 139.30, reflecting continued but softer price gains.

The data indicate that inflation is gradually cooling, reinforcing expectations that the Bank of England will maintain a cautious stance as underlying pressures continue to ease.

Market impact: Mildly negative for GBP; softer inflation reduces pressure on the BoE to tighten policy further.