FTSE Bounces on Surprise UK Economic Growth

The FTSE 100 index closed higher on Friday after the UK economy showed stronger-than-expected growth of 0.4% in July, beating forecasts for no expansion.

This marked an acceleration from June's 0.3% growth and was a welcome surprise, given concerns about the impact of high energy prices on inflation.

According to the Office for National Statistics, the economy was 1.6% larger than in July last year, with services output increasing by 0.4%, matching June's expansion.

The Confederation of British Industry warned that despite this resilience, the second half of the year is likely to be more challenging due to higher household energy bills and volatile energy markets.