London’s FTSE 100 closed 0.12% higher on Thursday after a slew of economic reports and corporate updates.
The UK’s gross domestic product expanded 0.1% month over month in August, following a revised 0.1% decline in July, the Office for National Statistics said. The reading is consistent with analysts’ expectations for the month.
“The UK economy failed to grow between June and August, suggesting the slowdown that we forecast is beginning to materialize,” Berenberg said. “Looking ahead, we expect a slowdown in real household disposable income growth and tax rises to keep aggregate demand subdued over the winter.”
In corporate news, Whitbread (WTB.L) led the blue-chip fallers with a 10.27% decline after the hospitality company’s profit for the first half ended Aug. 28 declined to 216.9 million pounds sterling from 219.9 million pounds year over year amid lower revenue.
“We’re making great progress against our strategic priorities and our Five-Year Plan is firmly on track to deliver a step change in profits, margins, and returns,” Chief Executive Officer Dominic Paul said while the Premier Inn owner cut guidance for its German operations over weaker-than-expected demand and fewer “high-impact events” boosting travel.
On the upside, Croda International (CRDA.L) topped the FTSE 100 list, rising 8.54%, after the specialty chemicals company logged a 4.4% uptick in third-quarter sales to 424.7 million pounds. Croda also affirmed its adjusted pretax profit guidance on the back of “good” year-to-date sales growth and delivery of anticipated cost savings.
“We expect the more challenging trading environment and low order book visibility to continue for the remainder of the year. In line with previous years, absolute sales in Q4 are likely to be seasonally lower than in the first three quarters as customers typically manage their working capital into the year end,” the company warned.
