UK stocks experienced a noticeable increase last Friday, while the British pound firmed up against other leading currencies. This rebound followed the release of data showing that the UK economy had recovered from a technical recession in the first quarter, driven by a resurgence in the service sector and household expenditure.
According to statistics from the Office for National Statistics, the UK's gross domestic product (GDP) increased by 0.6% compared with the previous quarter, a significant improvement on the 0.3% shrinkage observed in the preceding quarter. GDP had contracted by 0.1% in the third quarter of the previous year.
Growth for the first quarter outstripped expectations, with economists initially predicting a growth rate of 0.4%. Furthermore, GDP rose year-on-year by 0.2% in the first quarter, exceeding predictions of flat growth.
The FTSE 100, the benchmark index, climbed 61 points or 0.7%, standing at 8,442, after a 0.3% increase on the prior day. Rising metal and crude oil prices pushed mining and energy stocks up. Mining companies Anglo American, Antofagasta, and Glencore all saw around a 2% increase, while energy giants BP Plc and Shell gained 1.2% and 1% respectively.
CRH, a building materials solutions provider, saw its stock rise an impressive 4% after the company confirmed its full-year predictions. Additionally, British Airways parent company, IAG, experienced a 0.6% rise in its stock after surpassing profit expectations for Q1.
