The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are Heathrow, EMIS Group, UnitedHealth Group and De La Rue. Read the Friday 11 August Business Live blog below.
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IoD: ONS data ‘shows a worrying decline in business investment’ despite solid growth
Chief economist at the Institute of Directors Kitty Ussher:
‘This is an encouraging set of data showing an economy performing strongly in June.
‘There was decent growth in both retail and manufacturing, helped by a positive rebound effect from the previous month when activity had been reduced due to the extra bank holiday for the King’s Coronation.
‘Looking across the full three months of the second quarter, we also see economic growth picking up compared to earlier in the year, although today’s initial estimates are subject to revision. In particular, car production has benefited from falling input prices, and consumer demand has also proved resilient, helped by decent weather in June.
‘However the quarterly data also shows a worrying decline in business investment in ICT and machinery following the expiring of the government’s super-deduction allowance at the end of March. It also shows falls in expenditure on scientific R&D, advertising and market research, which could be an early indicator of difficulties ahead.’
GDP growth beats expectations in June
The British economy grew faster than expected in June, with firms citing the extra May bank holiday as a driver of output, Office for National Statistics data shows.
GDP growth came in at 0.5 per cent for the month, surpassing expectations of 0.2 per cent, while growth for the second quarter overall was 0.2 per cent.
‘The actions we’re taking to fight inflation are starting to take effect, which means we are laying the strong foundations needed to grow the economy,’ Chancellor Jeremy Hunt said.
