London pre-open: Stocks seen flat as investors mull retail sales, borrowing data

(Sharecast News) - London stocks were set for a steady open on Friday as investors mulled the latest UK retail sales and borrowing figures.

The FTSE 100 was called to open unchanged at 10,748.

Data from the Office for National Statistics showed that retail sales fell 0.5% in July, as expected, following a revised 0.7% rise in June.

ONS chief economist Grant Fitzner said: "Retail sales increased in the latest three months, with all main sectors, apart from motor fuel, seeing growth.

"Some retailers told us that hot weather and promotions helped sales of outdoor products and items such as fans, with clothing and online sports merchandise also doing well."

Separate figures from the ONS showed that government borrowing was £1.8bn in July, up £0.7bn on the same month a year earlier and £2.3bn above the Office for Budget Responsibility's forecast.

ONS chief economist Grant Fitzner said: "Public sector borrowing was lower in the financial year to date than in the same period last year, both in total and as a share of the economy. However, it is above the OBR spring forecast.

"Conversely, borrowing was slightly higher this month than in July last year, with spending growth outpacing higher receipts, including from self-assessed taxes which often feed in more strongly in July."

Elsewhere, a survey released earlier showed UK consumer confidence hit its highest level in two years in August.

GfK's long-running consumer confidence index improved to -14 from -17 in July, with four of the confidence measures up and one down.

The index for personal finances over the last 12 months ticked up two points from July to -6, while the gauge tracking expectations for personal finances over the next year rose three points to 4 in August.

The measure for the general economic situation over the last 12 months dipped to -40 in August from -39 the month before, while the index for the general situation over the next year rose five points to -23.

The survey showed that more people thought it was a good time to make a major purchase, with that sub-index up five points to -7. The savings index, which is not included in the overall index score, was five points lower in August, at 22.

Neil Bellamy, consumer insights director at GfK, an NIQ company, said: "Does all this mean that people have greater faith in the new government to increase growth and job opportunities? Can consumers finally see an end to the cost-of-living crisis? It would be tempting to say yes, but frankly it's too soon to tell.

"With inflation back on the rise - now at 2.9% and the highest in four months - and with continued uncertainty in the Middle East and elsewhere, there are still many challenges ahead that will test the mettle of UK consumers."

Corporate news was scarce but precision engineering group Hunting reported lower firsthalf revenues and earnings and trimmed its fullyear underlying earnings guidance, with softer trading in several product groups outweighing stronger performances in Perforating Systems and Subsea.

Revenues fell 6% to $497m in H126, while EBITDA dropped 12% to $62.1m, reflecting the absence of Kuwait Oil Company orders completed in H125 and slower activity in advanced manufacturing, offsetting solid organic growth in Perforating Systems and Subsea.

Given delays to Kuwait Oil Company's OCTG tender, Hunting cut its FY26 EBITDA guidance to $138m to $141m, around $10m lower than previously expected.

Private hospital operator Spire Healthcare said Toscafund has been granted more time to finalise a possible 250pashare cash offer, after the fund completed due diligence and continued to work towards a recommended bid.

Spire said the board requested, and the takeover panel has consented to, an extension of the "put up or shut up" deadline until 3 September.