UK Economy Unexpectedly Contracts in October

London's stock markets closed lower after the UK economy unexpectedly contracted by 0.1% in October, marking a second consecutive monthly decline. The FTSE 100 index fell 0.14% while the FTSE 250 dropped 0.29%, as the pound weakened against major currencies, trading at $1.2624 against the dollar. The contraction was primarily driven by a 0.6% drop in production output and a 0.4% decline in construction, with services showing no growth. Despite the downturn, consumer confidence saw a slight uptick, reaching a four-month high in December, reflecting more positive sentiment about personal finances. Analysts suggest that while the economic data is concerning, it may not significantly impact the Bank of England's upcoming rate decisions. Overall, the economic outlook remains cautious, with expectations of slower growth amidst persistent inflation concerns.