London stocks experienced a slight decline on Monday following three consecutive days of increases at the beginning of a holiday-shortened week, as recent data indicated that Britain’s economy expanded at a lackluster rate in the previous quarter. The UK’s blue-chip FTSE 100 was down 0.4% at 1121 amid quiet trading, while the domestically focused midcap FTSE 250 index eased 0.3% from a seven-week high. Official data indicated that GDP expanded by a mere 0.1% in the third quarter, consistent with forecasts, while growth for April to June was adjusted downward to 0.2% from the previously reported 0.3%.

The data indicate that elevated taxation and persistent inflation are exerting pressure on economic activity, even in the face of rising household expenditure and declining savings rates. The deceleration has sparked apprehensions regarding consumer durability and corporate profitability as we approach 2026. Among sectors, consumer staples underperformed. Beverage stocks experienced losses, down 2.6%, with Coca-Cola UK declining by 2.1%. The personal care, drug, and grocery sub-index experienced a decline of 1%, with Ocado Group decreasing by 3.3% and Tesco falling by 1.3%.

Gold miners managed to limit their losses as Rio Tinto, Glencore, Endeavour Mining, and Fresnillo capitalized on gold’s ascent above $4,400 an ounce for the first time. Despite Monday’s dip, the FTSE 100 is poised for its most successful year since 2009, reflecting a 20.6% increase year-to-date, supported by the performance of defence and financial stocks. By comparison, Wall Street’s benchmark S&P 500 index has risen 16% so far.

Among individual stocks, North Sea-focused Harbour Energy was down 4.7% after the company announced its intention to acquire deepwater oil and gas exploration and production company LLOG Exploration for $3.2 billion. AstraZeneca was down 0.6% after a late-stage trial testing its blockbuster therapy Imfinzi in combination with its experimental drug ceralasertib failed to improve the overall survival of patients with advanced lung cancer. As the year draws to a close, trading volumes typically decline, influenced by the absence of traders who are on holiday, alongside market closures on December 25 and December 26 in observance of Christmas and Boxing Day, respectively.