FTSE 100 Slips as Growth Data Tempers Rally
The FTSE 100 edged 0.1% lower on Thursday, snapping a three-day winning streak, while the more domestically focused FTSE 250 also dipped 0.1%.
UK GDP figures showed the economy slowed in the second quarter, though by less than expected, despite pressure from US trade tariffs and a weaker jobs market. The data prompted traders to scale back expectations for interest rate cuts this year.
George Brown, senior economist at Schroders, said much of the slowdown stemmed from manufacturers pulling forward production in the previous quarter to get ahead of tariffs—a drag he expects will ease in Q3, even amid a challenging global trade environment. He forecast the Bank of England will keep rates unchanged for the rest of 2025.
Energy stocks weighed on the FTSE 100, with Harbour Energy tumbling 4.6% and oil majors Shell and BP losing more than 1% each.
In contrast, Centrica rose 2.9% after announcing a £1.5 billion joint acquisition of the UK’s largest gas import terminal on the Isle of Grain from National Grid. Aviva jumped 3.5% to a 17-year high after lifting its interim dividend and posting a 22% rise in first-half operating profit.
