UK Stocks Slide as Economic Headwinds Mount—What's Really Going On

London’s benchmark index took a beating Friday, with the FTSE 100 hitting its lowest level in a month. Here’s what went down:

The Numbers:

• FTSE 100 fell 41.14 points (0.44%) to close at 9,486.54
• Dipped to a one-month low of 9,422.85
• Tech and commodities stocks were the biggest casualties, with some names down 3-5%

What Triggered the Selloff?

Three separate data releases painted a grim economic picture:

1. Retail Sales Tanked - October saw a 1.1% monthly decline, marking the first drop in five months. That’s worse than the 0.1% drop economists expected. Consumers are clearly holding back spending ahead of Black Friday.

2. Consumer Confidence Crumbled - The sentiment index plummeted to -19 in November (down 2 points), with deterioration across all five measures. People are basically bracing for bad news from next week’s budget announcement. “Bleak” is how one analyst described it.

3. Services Sector Slowing Fast - The S&P Global UK Composite PMI cratered from 52.2 to 50.5, well below the expected 51.8. Services specifically dropped from 52.3 to 50.5, signaling a sharp slowdown in private sector activity.

Market Action: Tech and mining stocks bore the brunt—Polar Capital Technology Trust, Antofagasta, and Glencore all down over 3%. Meanwhile, defensive plays like LSEG (+3.75%), Diageo, and Relx managed small gains.

The Bottom Line: Between weak retail spending, deteriorating consumer sentiment, and a slowdown in services, the UK economy is flashing warning signs heading into budget season.