British Equities Little Changed; IMF Lifts UK Growth Outlook

11:52 AM EDT, 10/13/2026 (MT Newswires) -- Britain's FTSE 100 closed Tuesday trading 0.06% in the red as the International Monetary Fund lifted its UK economic growth estimate for 2026, while oil prices declined in anticipation of more Russian diesel flowing into global markets. In its World Economic Outlook update, the IMF projected the UK economy will grow 1.3% in 2026, up from the 1% forecast released in July. For 2027, the growth estimate was reduced to 1.2% from 1.3% due to the expected impact of higher energy costs and interest rates on consumption and investment. In the British retail sector, sales climbed 1% year over year on a like-for-like basis in September, faster than the 0.5% increase in August and the consensus estimate of 0.8% growth, data from the British Retail Consortium showed. "September's retail sales figures point to an increasingly selective consumer. Overall sales increased, driven by food, but non-food sales were essentially flat and have declined slightly across the last three months. This is a battle for share of wallet, with shoppers prioritising some categories while postponing purchases elsewhere," said KPMG's UK head of consumer, retail and leisure, Linda Ellett. In corporate news, shares of Melrose Industries (MRO.L) surged 3.47% to one of the top spots of the blue-chip index at closing. The aerospace and defense company's unit, GKN Aerospace, is nearing a settlement of a civil investigation into its Garden Grove facility in California, US. The proposed settlement includes $15 million in civil penalties and a previously announced claims program of up to $100 million for eligible recipients. Whitbread (WTB.L) gained 2.15% after the British hospitality company "strongly" recommended shareholders vote against activist investor Corvex's resolution at a forthcoming shareholder meeting. Whitbread also affirmed its full-year outlook and five-year plan. Meanwhile, London Stock Exchange Group (LSEG.L) confirmed talks to buy credit platform Octus from investment firm Permira for $3.5 billion. The exchange operator expects the potential deal to be immediately accretive to group revenue growth. The stock was one of the worst performers on the index, down 4.68%. Infrastructure company Balfour Beatty (BBY.L) also fell 3.63% after selling its 50% stake in Gammon Construction to investment company Jardine Matheson Holdings (JAR.L) for 250 million pounds sterling.