The U.K.'s Office for National Statistics said that third-quarter gross domestic product shrank 0.4%, defying economists' predictions. The situation may prompt the Bank of England to expand its £175 billion bond-purchase program, economists said. "Having pumped in so much money and still seeing a decline in GDP is damaging from a perspective of confidence and expectations for recovery," said Stephen King, chief global economist at HSBC Holdings. "They'll be thinking very hard about whether to extend quantitative easing. They need to do something to show they care about the economy."

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