The UK's leading share index closed in the red on Monday, with trading subdued as businesses expressed a downbeat view of the country's economic prospects for the coming year.
Markets Tread Water Amid Growth Concerns
The FTSE 100 index closed down 31.45 points, or 0.3%, at 9,865.97. The mid-cap FTSE 250 managed a slight gain, ending up 30.01 points at 22,342.21, while the AIM All-Share closed up 3.09 points at 760.48.
The cautious mood was underscored by a fresh survey from the Confederation of British Industry (CBI), which indicated that firms across the private sector expect activity to fall in the next three months. This extends a run of negative predictions that began in late 2024.
Alpesh Paleja, Lead Economist at the CBI, said the surveys "round off a disappointing year for private sector growth." He pointed to persistent headwinds including tepid demand, cautious household spending, and strong cost pressures squeezing margins.
"Uncertainty ahead of November’s budget also put the brakes on key spending decisions and big projects, choking up pipelines of work," Paleja added.
Economic Data and Sector Performance
The CBI's gloomy assessment coincided with official data confirming a growth slowdown. The Office for National Statistics (ONS) reported that UK gross domestic product (GDP) grew by just 0.1% quarter-on-quarter in the three months to September 30th, 2025. This was a deceleration from a 0.2% rise in the second quarter.
Danni Hewson, Head of Financial Analysis at AJ Bell, commented: "With the Bank of England expecting growth to come to a standstill in the last few months of the year... it’s clear there are huge challenges to overcome if the UK’s growth story is going to become more compelling."
In Europe, the CAC 40 in Paris closed down 0.4%, while the DAX 40 in Frankfurt ended slightly lower. In contrast, stocks in New York were higher at the London close, with the Dow Jones up 0.5% and the S&P 500 and Nasdaq Composite both gaining 0.6%.
Gold Shines While Deal News and Fraud Hit Shares
Gold posted another record high, quoted at $4,440.54 an ounce. This buoyed mining stocks, with Endeavour Mining and Fresnillo rising 1.9% and 2.8% respectively to top the FTSE 100 leaderboard. Hochschild Mining on the FTSE 250 gained 3.7%.
In corporate news, Harbour Energy fell 1.3% despite announcing a $3.2 billion acquisition of LLOG Exploration. Jefferies analyst Mark Wilson called the deal a "game changer" that provides strategic entry into the US market.
The Rank Group shed 4.7% after reporting its Spanish operations were victims of payment fraud totalling around €7.1 million. Meanwhile, Enwell Energy plummeted 29% after its gas facilities in Ukraine were attacked by Russian military drones.
Brent crude oil was quoted at $61.87 a barrel, rising from $60.16 on Friday. Analyst Kathleen Brooks at XTB linked the increase to a US oil blockade on Venezuela, but cautioned that gains could be fleeting.
The biggest fallers on the FTSE 100 were DCC, Diageo, and Coca-Cola Europacific Partners. The US 10-year Treasury yield widened to 4.17%.
Looking ahead, Tuesday's economic calendar features minutes from the Reserve Bank of Australia, Canadian GDP data, and US personal consumption expenditures figures.
