London Shares End Week Lower; UK Consumer Confidence Deteriorates Further

11:47 AM EDT, 10/23/2026 (MT Newswires) -- British equities ended the week lower, with the FTSE 100 closing 0.51% down on Friday, as investors assessed fresh UK economic data showing a sharp deterioration in consumer confidence alongside continued private-sector growth. The GfK Consumer Confidence Barometer fell to -24 in October 2026 from -13 in the previous month, marking its steepest monthly decline since July 2016, when the UK voted to leave the European Union. Expectations for the wider economy over the coming year and intentions to make major purchases recorded the largest falls, both dropping 14 points. "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," GfK Consumer Insights Director Neil Bellamy said. Meanwhile, S&P Global data showed that the UK's private sector output continued to expand in October, with the flash UK PMI Composite Output Index reaching an eight-month high of 53.1 in October, up from 52 in September and the consensus of 51.8. Separately, UK retail sales volumes fell 0.4% in September after a revised 0.7% increase in August, according to the Office for National Statistics. Analysts expected a 0.1% dip for the month. "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," Berenberg noted. In other news, the UK government urged households to keep three days' worth of emergency supplies at home, citing this week's PHP software vulnerability incident and a summer marked by record heat, drought and wildfires, Reuters reported. On the corporate front, Rolls-Royce (RR.L) declined the most on the blue-chip index, closing 7.51% lower. The aerospace, defense and power systems company was reportedly in the final stages of negotiations with the UK government over support for the development of its UltraFan 30 engine. The Financial Times reported, citing two people briefed on the matter, that the potential package was valued at between 100 million pounds sterling and 200 million pounds. Rio Tinto Group (RIO.L) 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 & Lithium Chief Executive Jérôme Pécresse described the project as a significant new mining investment for Queensland and reaffirmed the group's commitment to its bauxite business and integrated aluminium value chain. The stock closed the session 0.72% in the red.