London’s equity markets held near multi-week highs on Friday, with the FTSE 100 sustaining gains supported by heavyweight mining and defence stocks even as fresh data pointed to weakening UK retail activity and consumer sentiment.

The benchmark index posted modest advances, underpinned by broad strength in global markets and optimism over interest rate developments, but domestically oriented stocks remained under pressure amid signs of softer consumer demand.

Analysts described the mood as cautious, with investors balancing upbeat asset performance against economic indicators that suggest tighter conditions for households and retailers.

Retail sales volumes in Great Britain unexpectedly declined in November, dipping by point one per cent in the run-up to Christmas — a pivotal season for the sector — despite expectations of a modest increase.

This marked the second consecutive monthly drop, with supermarket and online sales both contracting and dampening broader confidence in consumer spending.

At the same time, a major industry survey revealed that UK retailers’ assessments of sales and prospects deteriorated sharply in December, with expectations of further weakness into the new year.

The mixed signals come as policymakers and market participants digest a data-heavy week that included an interest rate cut by the Bank of England and a larger-than-expected government borrowing figure, which adds to the backdrop of fiscal and economic scrutiny.

While the FTSE 100 continues to outperform many peers globally on a year-to-date basis, observers note that the underlying economic narrative — particularly around consumers’ willingness to spend — remains fragile.

This divergence between financial markets and real-economy indicators underlines investor caution as the UK economy approaches the crucial Christmas trading period and heads into early 2026 with muted sentiment among shoppers and retailers alike.