London-listed stocks continued their downward trajectory, closing negative for the fourth consecutive trading day on Thursday. The FTSE 100 index, a key indicator of the London stock market's performance, recorded a loss of 0.34%. This decline was prompted by new economic data indicating a slowdown in the expansion of the UK's construction sector, a critical area for economic growth and stability. Among the blue-chip companies, **Associated British Foods** ($ABF) faced the steepest decline in stock price, plummeting by 8.48%.
This British multi-national food, ingredients, and retail group provided an outlook that suggests optimism despite dealing with short-term volatility in its sugar business segment. The firm anticipates lower-than-expected profitability for the fiscal year 2024, yet remains steadfast in its broader growth strategy, emphasizing resilience in their core operations. Conversely, the **Vistry Group** ($VTY) experienced a notable surge, with stock prices rising by 8.50% at the close of trading.
This uplift followed the company's announcement of year-over-year growth in both profit and revenue for the first half of the financial year. Looking ahead to the full-year 2024, Vistry Group maintains a positive outlook regarding profit growth compared to the previous year. In the realm of economic indicators, the S&P Global UK Construction Purchasing Managers' Index (PMI) revealed a reading of 53.6 for August, reflecting a decrease from the 26-month high of 55.3 recorded in July.
According to S&P Global, the slight expansion still signals positive developments, driven primarily by an uptick in new orders and a supportive economic environment that aided construction output volumes. Tim Moore, Director of Economics at S&P Global Market Intelligence, commented on the current state of the UK construction sector, stating, "The UK construction sector appears to have turned a corner after a difficult start to 2024, with renewed vigor in the house building segment the most notable development in August.
Residential work expanded at the fastest pace for almost two years as lower borrowing costs and a gradual recovery in market conditions helped to boost activity." Further economic indicators showed that new car sales in the UK faced a decline when compared year-over-year in August, totaling 84,575 units sold, down from 85,657 units.
However, on a year-to-date basis, there was an increase in car sales, climbing to 1,238,855 units from 1,179,298 units. As the market navigates these mixed signals, investors and industry stakeholders are closely monitoring developments, mindful of both the robust growth in specific sectors and the challenges presented in the broader economic landscape..