London open: FTSE falls after GDP data, CBI survey; gold miners shine

(Sharecast News) - London stocks fell in early trade on Monday as investors mulled a downbeat survey from the Confederation of British Industry and uninspiring GDP figures. At 0825 GMT, the FTSE 100 was down 0.3% at 9,872.27.

Data released earlier by the Office for National Statistics showed the economy grew 0.1% in July to September, in line with the initial estimate.

For the second quarter, growth was revised down to 0.2% from 0.3%.

ONS director of economic statistics Liz McKeown said: "Today's updated figures paint the same picture as our initial estimate, with growth continuing to slow in the third quarter.

"Growth in services were partially offset by falls in production, with a marked drop in car manufacturing.

"Our latest figures show the household saving ratio, whilst falling in recent periods, remains high by historic standards."

According to the figures, real GDP per head was estimated to have shown no growth in the latest quarter and was up 0.9% compared with the same quarter a year ago. Meanwhile, real household disposable income per head fell 0.8% in the latest quarter, following no change in the previous quarter.

Elsewhere, the CBI's latest Growth Indicator showed that private sector firms expect business activity to weaken again over the coming three months.

The growth indicator's weighted balance - the percentage of firms expecting an increase minus those expecting a decline - came in at -30% in December, extending a run of negative predictions that started in late-2024.

The balance for business volumes in the services sector came in at -29%, driven by weak readings in business and professional services (-24%) and consumer services (-46%).

Distribution sales expectations fell to their lowest level since June 2020 at -47%, while manufacturers were predicting a modest fall in activity at -17%, which was slightly less negative than the previous month.

The gloomy outlook came as the downturn in private sector activity over the three months to December was relatively unchanged at -34%, compared with -35% for the three months to November, with all sectors reporting declines.

"Our latest surveys round off a disappointing year for private sector growth. They mark a continuation of the headwinds that have plagued businesses over the past 12 months: tepid demand conditions, with households cautious around spending; and strong cost pressures squeezing margins," said CBI deputy economist Alpesh Paella.

"Uncertainty ahead of November's Budget also put the brakes on key spending decisions and big projects, choking up pipelines of work. The latest Growth Indicator suggests that the alleviation of this uncertainty hasn't materially boosted activity."

In equity markets, precious metals miner Fresnillo and gold miners Hochschild and Endeavour all shone as gold and silver prices hit fresh highs.

Heavily-weighted miners rallied, with Glencore, Rio Tinto, Anglo American and Antofagasta among the top risers on the FTSE 100.

On the downside, gambling operator Rank Group slumped after saying its Spanish businesses had been hit by a payment fraud costing it €7.1m.

The group said it had reported the incident at the Enracha and Yo business to law enforcement agencies and was supporting investigations, as well as carrying out its own internal probe with the help of an external law firm.

"Given the exceptional nature of this incident, Rank Group expects to treat the financial impact as a separately disclosed item in relation to its 2025/26 performance," the company said.