FTSE 100 loses ground as UK public debt rises to 63-year high

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The FTSE 100 slipped on Friday after official figures showed UK state debt rose to levels not witnessed for more than 60 years in May.

The blue-chip index fell 35 points to 8,238 on Friday, a 0.4% fall.

Earlier, the Office for National Statistics (ONS) found that public sector net debt as a proportion of UK GDP (gross domestic product) rose to 99.8% for the month.

Separate data showed the UK’s private sector grew at its slowest rate for seven months in June, as goods and services inflation remained stubbornly high and firms put spending decisions on hold until after the General Election.

It comes after the Bank of England voted to keep rates held at 5.25% until at least August on Thursday, in a move which was criticised by some segments of the corporate world as stifling growth.

Russ Mould,…

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