British equities moved slightly higher on Friday, following gains across major European markets, even as the pound weakened and fresh data showed the U.K. economy unexpectedly remained in contraction during October.
By 0825 GMT, the FTSE 100 index was up 0.4%, while sterling slipped 0.07% against the U.S. dollar, trading just above the 1.33 level. Elsewhere in Europe, Germany’s DAX advanced 0.7% and France’s CAC 40 gained 0.6%, supporting a positive regional market tone.
U.K. economic and market update
New figures from the Office for National Statistics revealed that the U.K. economy contracted by 0.1% month-on-month in October, matching the decline seen in September. The reading fell short of economists’ expectations for a modest 0.1% expansion. On an annual basis, gross domestic product grew by 1.1%, in line with the previous month but below forecasts of 1.4%.
Analysts pointed to uncertainty ahead of the Autumn budget presented by Chancellor Rachel Reeves as a factor weighing on economic activity and business confidence.
In corporate developments, Rio Tinto Ltd announced it had signed an interim modernised agreement with the Yinhawangka Aboriginal Group covering its mining operations on Yinhawangka land. The interim deal updates a 2013 agreement, with a comprehensive long-term arrangement expected to be finalised in 2026.
Capita PLC issued a trading update for the 11 months to November 30, reporting weaker-than-expected revenue performance in some divisions. Despite this, the outsourcing group maintained its full-year profit guidance and confirmed it had reached a transition agreement relating to its remaining closed book Life & Pensions contracts.
Card Factory PLC cut its full-year profit outlook, citing ongoing pressure on consumers that has reduced high street footfall during a key trading period. The retailer now expects adjusted profit before tax for the full financial year to range between £55 million and £60 million, down from earlier guidance, reflecting subdued consumer confidence and cautious spending behaviour.
Meanwhile, WH Smith PLC said it has postponed the release of its preliminary results for the financial year ended August 31, 2025. The global travel retailer will now publish its results on December 19, 2025, later than previously indicated in its October update.
