FTSE 100 today: Index edges higher as pound strengthens; GDP grows modestly

Investing.com -- British stocks moved slightly higher on Thursday while the pound continued to strengthen against the dollar, as economic data showed that the UK economy returned to modest growth in August.

The blue-chip index FTSE 100 crept 0.1% higher and the British GBP/USD gained 0.2% against the dollar, climbing to 1.3430. 

Meanwhile, the DAX index in Germany gained 0.4% and the CAC 40 in France rose about 1.4%.

UK economy grows in August

The UK economy returned to modest growth in August, expanding 0.1% on a monthly basis after showing no growth in July, according to data released Thursday by the Office for National Statistics.

This slight economic improvement comes as Chancellor Rachel Reeves prepares to deliver the autumn budget.

UK round up:

• In corporate news, Whitbread PLC (LON:WTB) shares fell after the hospitality group reported first-half 2026 results. Despite beating profit expectations with adjusted profit before tax of £316 million (4% above consensus estimates of £305 million), the company warned of higher costs in the UK and reduced its profit forecast for Germany. Whitbread’s revenue for the six months ended September declined 2% year-on-year to £1.54 billion, slightly above the consensus estimate of £1.53 billion. Adjusted earnings per share were 133.7p, down 2% from a year earlier but above the consensus of 129p.
• Travis Perkins PLC (LON:TPK) reported a return to growth in the third quarter with like-for-like sales increasing 1.8%, exceeding analyst expectations of 0.5%. The UK’s largest building materials distributor saw its Merchanting business post a 1.7% like-for-like sales increase, driven by volume growth of 2.5% despite price and mix declining by 0.8%.
• Shares in Croda climbed after the chemicals supplier reported better-than-expected third-quarter sales and maintained its full-year guidance. The company posted Q3 group sales of £425 million, ahead of the £417 million expected by analysts. Revenue rose 4.4% year-on-year, with constant currency growth of 6.5%, reflecting continued solid demand.
• In regulatory news, the UK’s Competition and Markets Authority published revised merger remedies guidance for consultation on Thursday. The proposed changes aim to create a more flexible approach while maintaining consumer protections as part of the CMA’s implementation of its "4Ps" strategy - pace, predictability, proportionality and process - designed to drive growth and business confidence.