London’s blue-chip index closed Friday’s session 0.51% lower as investors digested a wave of UK economic data painting a mixed picture of the British economy.
The GfK Consumer Confidence Barometer dropped sharply to -24 in October 2026, falling from -13 the previous month in its steepest single-month decline since the Brexit vote in July 2016.
Expectations for the wider economy over the coming year and intentions to make major purchases both recorded the largest falls, each dropping 14 points across the survey period.
GfK Consumer Insights Director Neil Bellamy warned that the breadth of the decline made the findings particularly concerning for policymakers focused on growth.
“With no single major economic event driving the decline, and with weakness seen across the full spectrum of income, age and gender demographic groups, these are damaging findings given the UK government’s priority of economic growth,” Bellamy said.
Despite the confidence slump, S&P Global data offered some relief, with the flash UK PMI Composite Output Index climbing to an eight-month high of 53.1 in October, beating the consensus estimate of 51.8.
UK retail sales volumes also disappointed, falling 0.4% in September after a revised 0.7% increase in August, according to the Office for National Statistics, against analyst expectations of a 0.1% dip.
Berenberg flagged the data as a potential turning point, noting that “the drop in retail sales volumes in September and slump in consumer confidence in October could be the first signs that the long-awaited squeeze on consumer spending from the Iran war is materialising.”
The UK government separately urged households to keep three days’ worth of emergency supplies at home, citing this week’s PHP software vulnerability incident and a summer defined by record heat, drought and wildfires.
Rolls-Royce (RR.L) was the worst performer on the FTSE 100, closing 7.51% lower amid reports the company was in the final stages of negotiations with the UK government over support for its UltraFan 30 engine development.
The Financial Times reported, citing two people briefed on the matter, that the potential support package was valued at between 100 million pounds sterling and 200 million pounds.
Rio Tinto Group (RIO.L) announced it had earmarked $1.9 billion for the planned development of its Kangwinan bauxite project on the Western Cape York Peninsula in Queensland, Australia.
Rio Tinto Aluminium and Lithium Chief Executive Jérôme Pécresse described the project as a significant new mining investment for Queensland, reaffirming the group’s commitment to its bauxite business and integrated aluminium value chain.
Rio Tinto shares closed the session 0.72% lower, adding to the broader market weakness that left London equities nursing losses heading into the weekend.