London open: FTSE flat as GDP data disappoints

(Sharecast News) - London stocks were steady in early trade on Thursday after the release of disappointing UK GDP data.

At 0823 BST, the FTSE 100 was flat at 8,865.06.

Figures from the Office for National Statistics showed the economy contracted more than expected in April as higher taxes and Trump's tariffs took their toll.

The economy shrank 0.3% following 0.2% growth in March. Economists were expecting a contraction of 0.1%.

Monthly services output fell 0.4% in April following 0.4% growth the month before, and was the largest contributor to the fall in monthly GDP.

Production output shrank 0.6% in April following a 0.7% contraction in March, while construction output grew 0.9% following growth of 0.5% in March.

ONS director of economic statistics Liz McKeown said: "The economy contracted in April, with services and manufacturing both falling. However, over the last three months as a whole GDP still grew, with signs that some activity may have been brought forward from April to earlier in the year.

"Both legal and real estate firms fared badly in April, following a sharp increase in house sales in March when buyers rushed to complete purchases ahead of changes to stamp duty. Car manufacturing also performed poorly after growing in the first quarter of the year."

Separate data from the ONS showed that the value of goods exports fell by �2.7bn, or 8.8% in April 2025, with falls in exports to both the EU and non-EU countries.

Exports of goods to the US fell by �2bn, which the ONS said was "likely linked" to the implementation of tariffs on goods imported there. This was the largest monthly decrease since records began in January 1997 and followed four months of consecutive increases.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "April's 0.3% drop in UK GDP was a reality check after the strong first quarter, with the boost from exports and investment clearly starting to unwind.

"Manufacturing and services both saw declines, and trade took a hit as exports to the US fell sharply following a first quarter rush to beat tariffs. While this won't trigger a rate cut from the Bank of England next week, it adds weight to the case for one in August, especially with growth expected to flatline in the second quarter."

Investors were also mulling the latest residential market survey from the Royal Institution of Chartered Surveyors, which showed that house prices weakened in May as consumer sentiment faltered.

In equity markets, Tesco rose to the top of the FTSE 100 as it reported a 4.6% jump in first-quarter like-for-like sales and an increase in it market share, and held its full-year guidance.

Housebuilder Crest Nicholson ticked higher as it held annual guidance after a rise in adjusted half-year earnings amid an easing in mortgage costs as interest rates fall.

Halma surged as the safety equipment firm reported record revenues and profits for the 12 months to 31 March, with both rising by double-digit percentages, and lifted its dividend by 7%.

Market Movers

FTSE 100 (UKX) 8,865.06 0.01%

FTSE 250 (MCX) 21,363.95 -0.30%

techMARK (TASX) 5,106.89 0.07%

FTSE 100 - Risers

Tesco (TSCO) 392.90p 1.97%

BP (BP.) 380.45p 1.83%

Fresnillo (FRES) 1,409.00p 1.51%

Shell (SHEL) 2,613.50p 1.24%

Sainsbury (J) (SBRY) 285.60p 1.13%

GSK (GSK) 1,534.00p 0.72%

Imperial Brands (IMB) 2,895.00p 0.70%

Bunzl (BNZL) 2,326.00p 0.52%

British American Tobacco (BATS) 3,589.00p 0.50%

BAE Systems (BA.) 1,875.00p 0.46%

FTSE 100 - Fallers

Intermediate Capital Group (ICG) 1,966.00p -3.72%

CRH (CDI) (CRH) 6,668.00p -2.77%

Land Securities Group (LAND) 616.00p -2.38%

easyJet (EZJ) 570.20p -1.86%

JD Sports Fashion (JD.) 79.22p -1.37%

Mondi (MNDI) 1,210.50p -1.30%

Whitbread (WTB) 2,854.00p -1.21%

InterContinental Hotels Group (IHG) 8,496.00p -1.21%

Anglo American (AAL) 2,118.50p -1.14%

Rio Tinto (RIO) 4,302.00p -1.13%

FTSE 250 - Risers

Trainline (TRN) 288.80p 4.71%

Premier Foods (PFD) 210.00p 3.45%

Frasers Group (FRAS) 738.00p 2.93%

Ithaca Energy (ITH) 154.70p 2.72%

Urban Logistics Reit (SHED) 159.00p 2.45%

Harbour Energy (HBR) 201.20p 2.39%

Empiric Student Property (ESP) 105.60p 2.33%

Me Group International (MEGP) 220.00p 2.33%

Wetherspoon (J.D.) (JDW) 749.50p 1.70%

PayPoint (PAY) 772.00p 1.58%

FTSE 250 - Fallers

Impax Environmental Markets (IEM) 365.00p -2.93%

XPS Pensions Group (XPS) 382.50p -2.80%

Wizz Air Holdings (WIZZ) 1,194.00p -2.53%

Carnival (CCL) 1,574.00p -2.51%

Auction Technology Group (ATG) 470.00p -2.39%

Hill and Smith (HILS) 1,668.00p -2.34%

SDCL Efficiency Income Trust (SEIT) 48.10p -2.24%

Dr. Martens (DOCS) 77.60p -2.08%

RS Group (RS1) 570.00p -2.06%

Vistry Group (VTY) 678.80p -2.05%