FTSE 100 Advances Despite Weak GDP Data

(RTTNews) - Despite data showing an unexpected contraction in the nation's GDP in the month of January, U.K. stocks are up in positive territory on Friday, tracking cues from other major European markets. Bank and mining stocks are among the prominent gainers.

The mood remains cautious amid concerns about tariffs and their potential impact on global economic growth. The benchmark FTSE 100 is up 49.94 points or 0.58% at 8,592.50 about half an hour before noon.

Melrose Industries is rising nearly 4%. Anglo American Plc is up 3.2%, while Rolls-Royce Holdings, EasyJet, Kingfisher, Fresnillo, BAE Systems, Rio Tinto, JD Sports Fashion, Beazley, Schroders, Glencore and Antofagasta are gaining 2 to 3%.

HSBC Holdings, Lloyds Banking, Standard Chartered, Natwest Group and Barclays Group are up 1 to 2%.

Prudential, Taylor Wimpey, Hiscox, Ashtead Group, Rentokil Initial, IMI, Vistry Group, BP, Persimmon, Croda International, Barratt Redrow, Next, B&M European Value Retail and IAG are up 1 to 2%.

Data from the Office for National Statistics showed UK's gross domestic product shrank 0.1% on a monthly basis in January, following a growth of 0.4% in December. GDP was expected to grow 0.1%.

In the three months to January, real GDP moved up 0.2% from the three months to October. Compared to last year, GDP growth was 1.2%.

On a yearly basis, GDP grew 1% in January, weaker than the forecast of 1.2%.

A 0.9% drop in industrial production contributed to the decline in growth in January. Industrial production has risen 0.5% in December.

Manufacturing output slid 1.1%, in contrast to the 0.7% increase in the previous month. At the same time, construction output was down 0.2%.

Services output edged up 0.1% in January, but this was weaker than the 0.4% expansion seen in December.

The latest quarterly Inflation Attitudes Survey conducted by Ipsos on behalf of the Bank of England revealed UK inflation expectations increased in February,

The one-year ahead inflation expectations rose to 3.4% in February from 3% in November. The current inflation rate is estimated to be 4.9% compared to 4.8% in November.