London Shares Slip; UK GDP Growth Beats Forecast

11:47 AM EDT, 09/30/2026 (MT Newswires) -- British equities ended lower on Wednesday, with the FTSE 100 closing 0.24% down, while final data showed that UK economic growth was stronger than initially estimated for the second quarter. Quarterly gross domestic product expanded 0.5% in the three months to June 2026, compared with the preliminary figure of a 0.4% gain and a 0.6% increase in the previous quarter, final data from the Office for National Statistics showed. Annually, the British economy grew 1.4%, marking the strongest economic expansion since the first three months of 2025. The flash estimate stood at 1.2%, while first-quarter growth was revised to 0.8%. Across the UK's automotive sector, total vehicle manufacturing grew 5.7% year over year to 40,872 units in August, the Society of Motor Manufacturers and Traders said. Car production rose 6.1% to 39,328 units, while commercial vehicle output declined 4.8% to 1,544 units. "August's return to growth and this month's [GBP]1 billion-plus investment commitments show hard-won confidence in UK automotive manufacturing, confidence that must be protected, not put at risk. The UK and EU automotive industries are deeply integrated, so effectively excluding British-produced vehicles from their largest market would assure mutual damage," SMMT Chief Executive Mike Hawes said. In corporate news, Saga plc (SAGA.L) shares surged 21.59% after it posted fiscal first-half attributable profit of 29.4 million pounds sterling, compared with a loss of 3.4 million pounds a year ago. The British insurance company lifted its full-year underlying pretax profit outlook to between 65 million pounds and 70 million pounds, "materially higher" than in fiscal 2026. Meanwhile, Spire Healthcare Group (SPI.L) swung to an attributable loss of 11.8 million pounds in the first half, from a profit of 6.5 million pounds a year ago. The British healthcare company's revenue declined to 792.7 million pounds from 796.7 million pounds earlier. The stock closed 0.20% in the green. "Spire has reported H1 2026 revenue broadly flat YoY and adj. EBITDA down 17% YoY, driven by the previously flagged NHS funding shortfall and cost inflation across a largely fixed cost base. The trajectory is consistent with what was communicated at the FY25 results in March and the 4-month trading update provided in May, with private payor growth accelerating (self-pay +4.5%, PMI +3.1%) and the Q1 NHS decline of 24.9% improving to -3.2% in Q2 as commissioning plans reset," RBC Capital Markets said. Greggs (GRG.L) proposed the closure of four manufacturing sites and 740 job cuts over 2.5 years. The British bakery chain, which affirmed expectations for a "modestly improved outcome" for 2026, closed the session 7.52% higher.