UK stocks ended the week on a negative note after higher-than-expected GDP data sparked concerns the Bank of England would cut interest rates as US inflation figures for the month of May boosted market sentiment.
The FTSE 100 fell 0.2%, recording its first monthly decline in four months. However, the index is up for the fourth consecutive quarter.
The FTSE 250 midcap index also fell 0.2%, posting weekly and monthly losses.
The British economy grew by 0.7% in the first three months of the year, compared with the previous quarter, beating estimates of 0.6% growth, according to official figures.
The figures come as Britons prepare to vote on July 4 in a general election that opinion polls suggest will see Labour leader Keir Starmer replace Conservative Rishi Sunak as prime minister.
The personal wear sector led the declines, falling 2.4% as Telsey Advisory Group cut Burberry’s target price from 1,300p to 1,000p.
Energy stocks led sector gains with 0.7% as expectations of a rate cut by the US Fed supported oil prices, while real estate investment trusts rose 0 .5%.
In the United States, personal consumption expenditure figures showed inflation moderating in line with expectations, bolstering hopes for anticipated interest rate cuts this year.
Shares in sportswear brand JD Sports Fashion fell 5.4% to the bottom of the FTSE 100 after Nike forecast a surprise drop in 2025 revenue on Thursday.
