UK Stocks Falter Amid Sluggish Economic Growth

UK stocks experienced a slight decline after a three-day rise, with economic data showing slow growth. The FTSE 100 dropped 0.4%, amid declining beverage stocks and cautious market activity ahead of 2026. Gold miners saw gains, while Harbour Energy and AstraZeneca experienced setbacks.

UK stocks took a downturn on Monday following three consecutive days of gains, as new data revealed sluggish economic growth in the last quarter. The decline began on a holiday-shortened week, showing the UK's blue-chip FTSE 100 dipping by 0.4% amid sedate trading activity.

Data from the latest quarter reflected the economy grew only 0.1%, aligning with forecasts, but showed signs of higher taxes and persistent inflation pressures. This has impacted consumer resilience and corporate earnings, with noticeable weakness in consumer staples and beverage sectors.

Despite the downturn, gold miners provided a buffer as gold prices surged. The FTSE 100 remains on track for its best performance since 2009. However, companies such as Harbour Energy and AstraZeneca faced difficulties, indicating mixed fortunes heading into 2026.

(With inputs from agencies.)