LONDON: Britain’s blue-chip index posted its biggest weekly loss in over two months on Friday as weak domestic retail sales data and hawkish rhetoric from major central banks fuelled recession worries.

The FTSE 100 fell 1.3% to a one-month closing low, pulled lower by oil and gas and healthcare sectors.

Global stocks extended losses after the US Federal Reserve, the European Central Bank and the Bank of England raised interest rates by 50 basis points earlier this week and signalled there were more rate hikes on the horizon despite signs of slowing economic growth.

Data on Friday showed British retail sales slid unexpectedly in November, while another set suggested the downturn across most businesses eased slightly in December, but economic activity remained below the 50 threshold denoting growth.

“The flash PMIs are consistent with our view that the UK economy is probably in a recession, although a relatively shallow one at the moment,” said Ashley Webb, UK economist at Capital Economics.

“While the price indices suggest that inflation continues to ease, they still remain high by past standards.” UK’s midcap FTSE 250 shed 1.6% to touch five-week low and is down over 20% so far this year.