The UK’s midcap index fell to a new low for the month as investors awaited business activity data to assess the status of the economy as a developing gas crisis in Europe heightened concerns about a coming recession.

By 0711 GMT, the domestically focused FTSE 250 was down 0.2%, marking the third session in a row, as rising UK gas costs added to concerns about rising inflation, which has been stifling the economy.

The exporter-heavy FTSE 100 slid 0.5%, dragged lower by pharma and consumer companies. But oil majors Shell and BP inched higher, supported by rising crude prices.

Investors will focus on the flash readings of August business activity, due at 0830 GMT, which are expected to show a further slowdown in growth in Britain, compared with July.

BT Group rose 1.1% after the British government ruled billionaire Patrick Drahi would not be forced to cut his 12.1% stake in the company as it did not pose any national security implications.