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* FTSE 100 down 0.1%, FTSE 250 off 0.3%

* JD Sports falls following Nike's forecast cut

* UK markets to close at 1230 GMT

(There will be no UK equities report on Dec. 25, 26 on account of Christmas and Boxing Day; Reuters will resume coverage on Dec. 27)

Dec 22 (Reuters) -

British equities edged lower on Friday as a dour GDP reading brought forward recessionary jitters, while investors braced for the latest U.S. inflation data due later in the day.

The blue-chip FTSE 100 slipped 0.1% as of 0901 GMT, and FTSE 250 midcap index fell 0.3%.

However, the indexes are set to extend gains to a fourth and third week, respectively, as global markets rallied on the

Federal Reserve's dovish pivot

while a

surprise drop in domestic inflation

boosted UK equities.

Britain's economy might now be in a recession according to data which showed

output shrank

in the July-to-September period.

"Some of the UK's biggest stocks rely on consumers spending on non-essentials, which makes this development a tough one," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

"The contraction in the economy increases the chances of an official recession coming down the pipes in the new year, but a lot will rest on just how much of a merry Christmas we've had".

A separate reading showed British retail sales volumes rose by 1.3% in November compared with the month before.

The November U.S. Personal Consumption Expenditure (PCE) index, the Fed's preferred inflation gauge due later in the day, would be on investors' radar.

Retailers were amongst top decliners, down 1.2%, while energy stocks added 0.5% tracking rising crude oil prices as tensions persisted in the Middle East following Houthi attacks in the Red Sea, capping losses.

Markets in the UK will end proceedings at 1230 GMT on account of a half-day Christmas holiday.

Among individual stocks, sportswear company JD Sports lost 5.1% after U.S. firm Nike, the world's largest sportswear maker, trimmed its annual sales forecast blaming cautious consumer spending. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Varun H K)