Fund markets in Great Britain decline due to consumer spending

• Fund indices in Great Britain have reported a decline due to a drop in consumer spending.
• Shares of Kingfisher and Associated British Foods fell due to forecasts of reduced consumer spending.
• Political instability in France has also impacted fund markets in Europe.

Fund markets in Great Britain declined on August 26, 2025, amid a reported drop in consumer spending. The FTSE 100 index closed at 9265.80, down 55.60 points, or 0.6%. The FTSE 250 also fell by 216 points, or 1.0%, to 21861.23.

The decline in shares was reflected in previous analyses by Deutsche Bank, indicating that consumer spending may decrease due to a cooling job market and rising inflation rates. The report noted that an increase in spending on essential goods could lead to a "tightening" in spending on non-essential items, such as clothing and household goods.

Shares of companies such as Kingfisher, Associated British Foods (owner of Primark), and Wickes reported significant losses. Kingfisher fell by 3.4%, while Associated British Foods dropped by 2.8%. Wickes declined by 8.6%. It is important to note that Deutsche Bank lowered its forecasts for these companies, indicating that consumer spending is expected to decrease.

In the USA, the situation was also mixed. President Donald Trump announced the dismissal of a member of the Federal Reserve, Lizzie Cook, which triggered speculation in the market. Meanwhile, the head of the Fed, Jerome Powell, expressed the possibility of lowering interest rates at the next meeting, which boosted hopes for economic support. It was noted that investors were concerned about potential changes in Fed leadership due to Trump's actions.

In Europe, shares also declined: the CAC 40 in Paris fell by 1.7%, while the DAX in Frankfurt decreased by 0.5%. In France, political instability led to a drop in shares of banking institutions such as Societe Generale, Credit Agricole, and BNP Paribas, due to potential distress in the markets.

Tags: Europe/Economy