FTSE 100 Climbs as UK Economic Data Surpasses Expectations
The FTSE 100 index rose by 0.57% on Friday as investors reacted positively to UK economic data.
S&P Global Market Intelligence reported that the flash UK Composite PMI Output Index reached a four-month high of 52.5 in August, exceeding the forecasted 51.6.
The increase was driven by growth in the services sector, while manufacturing activity declined due to reduced precautionary stock building.
Chris Williamson from S&P Global Market Intelligence noted that the UK economy showed a modest acceleration in August, potentially leading to solid economic growth of around 0.3% in the third quarter.
The Bank of England is likely to maintain its hawkish stance but may hold off on rate hikes until more clarity emerges on growth and inflation trajectories.