(Reuters) -London's FTSE 100 index logged its sharpest drop in over two weeks on Friday, weighed by declines in spirits maker Diageo, while investors parsed through some of the first datasets in 2025.

The blue-chip FTSE 100 fell 0.4%, but clocked a 1.4% weekly gain, logging its second straight week of gains and its best in six weeks.

The mid-cap FTSE 250 fell 0.2% but logged its best week in four with a gain of 0.7%.

Diageo fell 3.9% after the U.S. Surgeon General urged cancer warnings for alcoholic drinks. The stock was the worst performer on the FTSE 100 and dragged the beverages sector down 3.4%, leading losses.

Most major sectors traded in the red with the exception of heavyweight energy shares, that were up 1.5% as oil prices steadied at their two-month high touched on Thursday. [O/R]

Trading volumes were thin through the week shortened by Wednesday's New Year holiday.

The British Retail Consortium said the number of people visiting shops last year fell by 2.2%, the biggest drop since 2021. Footfall during the final quarter, which includes the holiday shopping season, also dropped compared with 2023.

Separately, data from the Bank of England showed consumer lending grew at the weakest pace since mid-2022 in November and lenders approved fewer mortgages than expected.

Business surveys have deteriorated since Finance Minister Rachel Reeves' October budget announced big tax increases on businesses. Policies in the budget could affect the BoE's existing gradual approach to monetary policy easing.

The central bank delivered two cuts totalling 50 basis points in 2024, and markets have priced in a reduction of nearly 58 bps this year.

Donald Trump's return to the U.S. White House with his potential tariff policies added to the jitters.

(Reporting by Purvi Agarwal and Sukriti Gupta in Bengaluru; Editing by Vijay Kishore and Alistair Bell)