London pre-open: Stocks to nudge down after record highs; GDP misses

(Sharecast News) - London stocks were set to nudge down at the open on Friday following record highs a day earlier and as the latest GDP data missed expectations.

The FTSE 100 was called to open around five points lower.

Figures out earlier from the Office for National Statistics showed the economy unexpectedly shrank in May, weighed down by faltering performances in manufacturing and construction.

The economy shrank 0.1% following a 0.3% contraction in April. Economists were expecting 0.1% growth.

Liz McKeown, director of economic statistics at the ONS, said: "May's fall in production was driven by oil and gas extraction, car manufacturing and the often-erratic pharmaceutical industry."

Investors will also be mulling the latest BRC-Sensormatic footfall monitor data, which showed that retail footfall eased across UK high streets in June as extreme heat and heavy downpours put off shoppers.

Total UK footfall decreased by 1.8% last month, compounding May's 1.7% decline.

The biggest slide was seen on the high street, where footfall decreased by 3.0%.

But there were also fewer people heading to retail parks and shopping centres, with footfall down 1.1% and 1.6% respectively.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Extreme weather meant shoppers stayed away from their local stores last month.

"High streets were particularly affected, as extreme heat was followed by severe thunderstorms, discouraging visits."

Dickinson noted that subdued consumer sentiment was also a problem for retailers, as shoppers remained reluctant to splash out amid ongoing domestic and global economic uncertainty.

However, some towns and cities performed better overall, with Manchester and Birmingham in particular benefiting from new shop openings and big name music concerts.

Andy Sumpter, retail consultant EMEA at Sensormatic, said: "June delivered heatwaves, storms and what could be the hottest June on record.

"One year on from the general election, with footfall still in the red, it appears that consumer confidence has yet to find its feet.

"That said, the rate of decline is easing, and with summer now in full swing, retailers have an opportunity to turn seasonal footfall into sustained momentum."

Corporate news was thin on the ground but BP said reported upstream production in the second quarter was now expected to be higher compared to the previous three months, with output higher in oil production & operations, primarily in its US bpx energy division, and slightly higher in gas & low carbon energy.