British stocks finished Thursday trading in a rather subdued manner, with the prominent FTSE 100 index declining by 0.10% at the close, reflecting a deceleration in the expansion of business activities in the UK. This downturn comes amid mixed economic signals as investors assess the broader implications for the market. Recent data from S&P Global's latest PMI survey highlights that the output from the UK’s private sector saw its slowest growth in September since June.
Specifically, the S&P Global UK PMI Composite Output Index was recorded at 52.6 for September, showing a decline from the 53.8 observed in August. In addition to the overall private sector performance, the growth within the UK's services sector also experienced a slowdown in September. The respective indicator fell to 52.4, down from 53.7 in the prior month, underlining a trend of easing expansion. Tim Moore, the economics director at S&P Global Market Intelligence, commented, "UK service providers indicated a moderate expansion of activity in September, driven by resilient business and consumer spending.
However, the post-election rebound lost some momentum, as output, new work, and employment all increased at their slowest pace in three months." On a corporate level, Tesco (TSCO) saw its stock rise by 2.56% at closing after reporting an increase in both its attributable profit and revenue year-over-year for the fiscal first half ending August 24.
The British retailer has consequently adjusted its guidance upward for retail adjusted operating profit for fiscal 2025, citing robust performance during the first half of the year. Bernstein analysts noted, "We believe this reinforces Tesco's status as a strong and stable performer, showcasing margin improvement alongside strong free cash flow." Ken Murphy, Chief Executive Officer of Tesco, remarked, "We are in excellent shape, with volume growth significantly enhancing our financial performance.
This continues our track record of delivering value for all stakeholders. Our vigorous momentum enables us to maintain a focus on value, quality, innovation, and an enhanced customer experience, while we diligently invest in growth opportunities that are aligned with our returns-focused objectives.".