FTSE 100 slips as pound strengthens; modest GDP growth and Whitbread drags

U.K. equities edged lower on Thursday afternoon as the pound gained ground against the U.S. dollar, with fresh economic data pointing to a slight rebound in economic activity.

By 11:44 GMT, the FTSE 100 had dropped 0.3%, while the pound rose 0.2% to trade at 1.34 against the dollar. On the Continent, Germany’s DAX slipped 0.1%, whereas France’s CAC 40 advanced around 1%.

U.K. economy shows slight uptick

The U.K. economy returned to modest growth in August, expanding 0.1% month-on-month after stagnating in July, according to figures released by the Office for National Statistics. The improvement comes as Chancellor Rachel Reeves prepares to unveil the autumn budget.

Corporate highlights: Whitbread weighs on index

• Whitbread PLC (LSE:WTB) shares fell after the hospitality group released first-half 2026 results. Although adjusted profit before tax came in at £316 million — 4% above consensus estimates of £305 million — the company flagged higher domestic costs and lowered its outlook for Germany. Revenue for the six months to September declined 2% year-on-year to £1.54 billion, slightly exceeding the £1.53 billion expected. Adjusted earnings per share stood at 133.7p, down 2% annually but above the 129p consensus.
• Travis Perkins PLC (LSE:TPK) delivered a stronger-than-expected performance in Q3, with like-for-like sales rising 1.8% compared to analyst expectations of 0.5%. The Merchanting division grew like-for-like sales by 1.7%, underpinned by a 2.5% increase in volumes, offsetting a 0.8% decline in price and mix.
• Croda (LSE:CRDA) shares climbed after the chemical producer posted better-than-expected third-quarter results and reiterated its full-year outlook. Group sales reached £425 million versus expectations of £417 million, marking a 4.4% annual increase and 6.5% growth at constant currency, supported by steady demand.

Regulatory developments

In regulatory news, the Competition and Markets Authority (CMA) launched a consultation on revised merger remedies guidance. The updated framework aims to increase flexibility while preserving consumer protections, aligning with the CMA’s “4Ps” strategy — pace, predictability, proportionality and process — designed to foster economic growth and boost business confidence.

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