FTSE 100 rises 0.2% at the open as UK economic growth accelerates
Key Facts
The UK’s FTSE 100 opened 0.2% higher at 10,859.51 points on November 12, as an estimate showed the economy grew faster in the third quarter. The Office for National Statistics estimated that real gross domestic product rose 0.7% from the second quarter, following growth of 0.5% in the previous quarter. The index moved in a session that saw mixed company updates, according to MarketScreener data carried by Alliance News. Among the main movers, Burberry shares rose after the company reported half-year results, while Rolls-Royce announced a share buyback and updated its annual outlook. The verified facts available do not include documented details on the index’s performance after the open or its closing level that day.
Office for National Statistics data showed quarterly growth accelerated from 0.5% in the second quarter to 0.7% in the third quarter of 2026. Year on year, GDP was estimated to be 1.9% above its level in the third quarter of 2025. This comparison measures GDP in a particular quarter against the same quarter a year earlier, while the 0.7% figure measures the change between consecutive quarters. The agency said the quarterly increase was driven mainly by services, particularly services provided to businesses. Services activity rose 0.9% in the third quarter, while output increased 0.1% and construction fell 0.7% from the second quarter.
In September, services rose 0.2% from the previous month and output increased 0.3%, while construction posted a monthly rise of 0.8%, according to the Office for National Statistics estimate. These figures separate one month’s movement from the quarterly comparison in the third-quarter GDP estimate. Profits rose 225% year on year, beating analysts’ average forecast of about 44 million pounds. The company’s revenue also increased 6% to 1.10 billion pounds, and comparable retail sales grew 4% for the fifth consecutive quarter.
Rolls-Royce announced an interim share buyback worth 1.5 billion pounds and said progress in the second half had strengthened its confidence in its guidance for fiscal 2026. It expects underlying operating profit of between 4.7 billion and 4.9 billion pounds, and free cash flow of between 3.8 billion and 4.0 billion pounds. The buyback is due to be completed by the release of its full-year results, and the company said it would review its medium-term targets when results are announced on February 25, 2027. In the defence sector, QinetiQ reported a 14% rise in underlying operating profit to 110 million pounds in the first half of its fiscal 2027, while revenue increased 3% to 923 million pounds. The company reaffirmed its annual revenue growth guidance range of 3–5%.
QinetiQ’s chief executive said the company had improved profitability through execution and efficiency, adding that the agreement to sell its U.S. businesses “strengthens QinetiQ’s focus on the areas where we see the strongest growth opportunities.” The November 12 session thus combined a higher opening for the index, faster economic growth than in the previous quarter and company results that did not all move in the same direction. The third-quarter GDP estimate came amid a contribution from services to growth and a contraction in construction, while September data showed monthly growth in all three sectors. The Office for National Statistics set December 11, 2026, as the date for the next release of its monthly GDP estimate. Rolls-Royce set February 25, 2027, for its full-year results and review of its medium-term targets.