FTSE 100 Rises as UK GDP Growth Surpasses Expectations

The UK's FTSE 100 index gained in early trading on Wednesday, buoyed by official data indicating the domestic economy expanded more than anticipated in the second quarter, boosting investor sentiment.

As of 07:18 GMT, the FTSE 100 was up 0.70%. The positive economic news also supported the pound, with sterling rising 0.31% against the dollar to $1.3271.

Economic Growth Beats Forecasts

The Office for National Statistics (ONS) reported that the UK's gross domestic product (GDP) grew by 0.5% in the April-to-June period. This figure surpassed the consensus forecast of 0.4%, though it was a slight moderation from the 0.6% growth recorded in the first quarter.

The ONS data highlighted several key drivers behind the growth:

• Net trade was the primary contributor, with export volumes increasing by 2.8%.
• The dominant services sector saw output rise by 0.6%.
• Household spending also showed resilience, increasing by 0.3%.

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Miners Lead Market Gains

Resource and mining stocks were among the top performers on the FTSE 100, lifting the broader index. Gains were seen across the sector, with Antofagasta rising 2.7%, Rio Tinto up 2.1%, Anglo American adding 1.8%, and Glencore advancing 1.0%.

Other European markets also traded higher, with Germany’s DAX index gaining 0.71% and France’s CAC 40 adding 0.32%.

Corporate Updates

In company-specific news, shares in over-50s specialist Saga rose after the company nearly doubled its underlying pretax profit in the first half of 2026 and raised its full-year outlook. Meanwhile, bakery chain Greggs also lifted its 2026 forecast following strong summer sales, though it simultaneously announced plans to close four manufacturing sites, resulting in potential job cuts.