British shares edged higher on Thursday after fresh economic data showed the UK economy expanded in August, defying expectations of a contraction. The modest gain came as investors weighed persistent inflation concerns in the US, a global technology sell-off and continued disruption to shipping through the Strait of Hormuz.
The FTSE 100 rose 0.06%, while France’s CAC 40 added 0.05% and Germany’s DAX slipped 0.40%. Sterling strengthened 0.44% to $1.3250.
UK GDP Growth Exceeds Expectations
Figures from the Office for National Statistics (ONS) showed that UK gross domestic product (GDP) increased by 0.1% in August, against forecasts for a 0.1% decline.
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Growth over the three months to August reached 0.7%, above the 0.5% estimate, while annual economic growth stood at 2.1%. Computer programming was the largest contributor to the three-month expansion, according to ONS economic statistics director Liz McKeown. The data offers some support for the UK economy as policymakers prepare upcoming budget measures.
Iran War Keeps Global Markets on Edge
Developments in the Middle East continued to influence investor sentiment, with shipping activity through the Strait of Hormuz remaining severely disrupted.
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