FTSE 100 Advances Despite Fresh UK Growth Setback and Softer Pound

Key Moments

FTSE 100 rose 0.4% as of 08:25 GMT, while GBP/USD slipped 0.07% to just above 1.33.
UK GDP fell 0.1% month-on-month in October, extending the previous month’s contraction and missing expectations of 0.1% growth.
Card Factory PLC (LON:CARDC) lowered its full-year profit outlook, whereas Capita PLC (LON:CPI) maintained guidance despite mixed revenue results.

Equity Markets and Currency Moves

British equities advanced on Friday, following gains across major European markets. At the same time, the pound eased against the dollar amid weak economic data.

By 08:25 GMT, the FTSE 100 had climbed 0.4%. Meanwhile, GBP/USD dipped 0.07% but remained above 1.33. Elsewhere in Europe, Germany’s DAX gained 0.7%, and France’s CAC 40 rose 0.6%, reflecting broad market strength.

UK Macroeconomic Outlook

Fresh data from the Office for National Statistics showed that the UK economy continued to struggle in October. Monthly GDP fell 0.1%, repeating September’s decline and missing forecasts of 0.1% growth. On a year-on-year basis, GDP grew 1.1%, below economists’ expectations of 1.4% but in line with the previous month.

Analysts suggest that uncertainty ahead of the Autumn budget, set to be presented by Chancellor Rachel Reeves, likely contributed to the slowdown. Overall, these figures indicate ongoing pressure on domestic economic activity.

Key UK Data Snapshot

Indicator	Period	Actual	Previous	Forecast
GDP (month-on-month)	October	-0.1%	-0.1%	0.1%
GDP (year-on-year)	October	1.1%	1.1%	1.4%

Corporate Developments

Rio Tinto Ltd (ASX:RIO) Updates Indigenous Land Agreement

Rio Tinto entered an interim modernized agreement with the Yinhawangka Aboriginal Group covering its activities on Yingawangka land. This interim deal builds on a 2013 arrangement, and the company aims to finalize a comprehensive agreement in 2026. Consequently, the partnership strengthens community engagement while allowing ongoing operations to continue smoothly.

Capita PLC (LON:CPI) Trading Update and Contract Transition

Capita reported weaker-than-expected revenue in certain segments for the 11 months to November 30. Nevertheless, the company maintained its full-year profit guidance. In addition, Capita secured a transition agreement for its remaining closed book Life & Pensions contracts, ensuring continuity for those clients.

Card Factory PLC (LON:CARDC) Cuts Profit Forecast

Card Factory revised its full-year adjusted profit before tax to a range of £55–60 million, down from prior expectations. The company cited ongoing consumer pressures and reduced footfall on the high street during key trading periods as the main factors. This downgrade reflects persistent challenges in the retail environment and softer consumer confidence.

WH Smith PLC (LON:SMWH) Adjusts Results Timetable

WH Smith announced a revised publication date for its preliminary results for the financial year ended August 31, 2025. The company will now release results on December 19, 2025, later than initially planned on October 29. This adjustment provides additional time for finalizing financial disclosures accurately.