FTSE 100 dips on declines in personal goods and homebuilders

By Khushi Singh

(Reuters) - Britain's main stock index ended lower on Wednesday, led by a drop in personal goods and homebuilder stocks, while investors assessed crucial UK and U.S. economic data ahead of interest rate decisions by central banks in coming weeks.

The blue-chip FTSE 100 index was down 0.4%, touching its lowest levels in three weeks earlier in the session. The domestically-focused mid-cap FTSE 250 ended flat, after its biggest drop in almost a month.

Rate-sensitive homebuilders hit near one-month lows, down 2.9%, after Barratt Developments said it did not anticipate profit growth until fiscal 2026. The homebuilder slipped 4.6%.

The personal goods index lost 4%, touching its lowest levels since February 2010, as sectoral heavyweights Burberry and Watches of Switzerland Group dipped 4.5% and 3.4% respectively.

Automobiles and parts were the top sectoral gainer, climbing 2.2%, while aerospace and defence shares added 0.9% as Rolls-Royce continued gains for the second session, adding 1.8%.

On the data front, a survey showed Britain's services activity grew last month at the fastest pace since April and price pressures eased, pointing to a more benign inflation outlook and a settling of the economy after July's election.

U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labour market was losing steam, but probably not enough for the Federal Reserve to consider a big interest rate cut this month.

Among individual stocks, Direct Line Insurance Group fell 2.4% after a half-year operating profit miss.

Airtel Africa dropped 5.2% to the bottom of the FTSE 100 after JP Morgan downgraded the stock to "Neutral" from "Overweight".

Insurer and asset manager M&G declined 1.5% after lower first-half operating profit.

(Reporting by Khushi Singh, Ankika Biswas in Bengaluru; editing by Rashmi Aich and Mark Heinrich)