UK’s FTSE 100 was dragged lower by consumer staples stocks on Thursday after British American Tobacco warned of rising costs, while investors worried about the outlook for the economy.

The blue-chip FTSE 100 fell 0.2%, while the FTSE 250 was up 0.1% by 08:14 GMT.

British American Tobacco fell 1.9% after the cigarette maker said it expects finance costs to rise.

The FTSE 350 Food, Beverage and Tobacco index fell 1%.

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A Recruitment and Employment Confederation survey showed signs that demand for staff and pay growth eased in November, ahead of the Bank of England’s rate hike decision next week.

DS Smith rose 2.1% after the cardboard maker said it expects annual performance to be ahead of its prior outlook on higher box prices and resilient demand from consumer goods companies.