London open: FTSE edges lower; UK GDP in focus
By Michele Maatouk
Date: Thursday 16 Oct 2025
(Sharecast News) - London stocks edged lower in early trade on Thursday as investors mulled the latest UK GDP figures.
At 0835 BST, the FTSE 100 was down 0.2% at 9,408.77.
Data released earlier by the Office for National Statistics showed the economy expanded modestly in August, supported by the dominant services sector.
GDP grew by 0.3% in the three months to August, in line with expectations and a slight increase on the 0.2% uplift seen in July.
Within that, services output grew by 0.4%, unchanged on July, while construction output rose 0.3%.
Production output was lower, falling 0.3%. But it was a notable improvement on July's downwardly revised 1.4% slide.
On a monthly basis, GDP rose 0.1%, following a 0.1% fall in July, and by 1.3% year-on-year.
Liz McKeown, director of economic statistics at the ONS, said: "Services growth held steady, while there was a smaller drag from production than previously.
"Continued strength in business rental and leasing and healthcare were the main contributors to services growth, partially offset by weakness in some consumer-facing services, while wholesalers also fared poorly."
The figures for July were revised downwards, with the ONS saying the economy shrank 0.1%, down from an initial estimate of no growth.
ING economist James Smith said the modest UK growth rebound won't ease the Chancellor's Autumn Budget "challenge".
"The UK economy may have been more resilient than expected in recent months, but that won't stop the Office for Budget Responsibility from downgrading its economic assessment in the autumn, blowing a £25bn hole in the budget relative to the Spring Statement in March," he said.
In equity markets, Premier Inn owner Whitbread tumbled as it downgraded its full-year profit outlook for Germany and posted a drop in interim profits and revenue.
In the 26 weeks to 28 August, adjusted pre-tax profit fell 7% from the same period a year earlier to £316m, while revenue dipped 2% to £1.5bn.
Whitbread said the profit figure reflects broadly flat UK total accommodation sales and positive momentum in Germany, offset by expected lower food and beverage sales due to the continued implementation of its 'Accelerating Growth Plan'.
The company downgraded its FY26 adjusted pre-tax profit guidance for Germany to "up to £5m", from previous guidance of between £5m and £10m. It pointed to a softer market performance in the second quarter as there was a lower number of high-impact events this year.
InterContinental Hotels also lost ground.
Building materials group Travis Perkins edged lower despite reporting a return to underlying sales growth in its third quarter, as actions taken to "sharpen the competitive proposition" in the merchanting operations paid off.
Flexible workspace operator Workspace Group was in the red as it posted a 2.3% decline in like-for-like occupancy, dropping to 80% in the second quarter, largely due to customer vacations at The Centro Buildings.
Elsewhere, Persimmon, Diageo, Howden Joinery, Games Workshop, Coats Group and ITV all fell as they traded without entitlement to the dividend.
On the upside, speciality chemicals firm Croda International gained as it reiterated its full-year outlook and posted a jump in third-quarter sales.
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