UK's FTSE falls as weak retail sales adds to economic growth concerns

UK's main stock indexes fell on Friday as major central banks stuck to their hawkish stance on interest rates and as an unexpected drop in British retail sales also fuelled concerns about an economic downturn. The blue-chip FTSE 100 fell 0.5% while the mid-cap FTSE 250 shed 0.6% by 0827 GMT.

UK's main stock indexes fell on Friday as major central banks stuck to their hawkish stance on interest rates and as an unexpected drop in British retail sales also fuelled concerns about an economic downturn.

The blue-chip FTSE 100 fell 0.5% while the mid-cap FTSE 250 shed 0.6% by 0827 GMT. The past week saw the U.S., UK and European Union central banks raise rates as expected and pledge to continue raising rates into the next year.

UK retail sales dropped by 0.4% in November, against expectations of a 0.3% rise from October, highlighting the stress felt by households as a cost-of-living crisis squeezed their finances. Retailers shed 1%. In company news, gaming operator Rank Group fell 7.8% after warning of a lower full-year profit due to a drop in customer spending amid the cost-of-living crisis.

Drugmakers such as AstraZeneca and industrial firms were also big drags on the FTSE 100.