London’s equity markets closed the week virtually flat on Friday, with the FTSE 100 slipping just 0.03% as weak construction data weighed on sentiment.
The S&P Global UK Construction PMI came in at 44.3 in August, falling short of both the prior month’s reading of 44.7 and the consensus estimate of 45.8.
The August figure marks the twentieth straight month the index has sat below the neutral 50 threshold, underlining the sustained pressure gripping Britain’s building sector.
S&P Global Market Intelligence Economics Director Tim Moore said: “UK construction companies experienced another solid reduction in output volumes, with a faster downturn in house building the main reason for a weaker overall performance during August.”
Moore added: “A sharp and accelerated drop in residential activity more than offset slower falls in the commercial and civil engineering sub-sectors.”
Elsewhere, the UK car market delivered a more encouraging picture, with new registrations rising for the ninth consecutive month in August, according to the Society of Motor Manufacturers and Traders.
A total of 94,236 new cars were registered on UK roads during the month, representing a year-on-year increase of 13.7% and continuing a strong run for the sector.
SMMT Chief Executive Mike Hawes welcomed the figures but struck a cautious note, saying: “August was a bright spot for the new car market and another strong month for electric car uptake, showing that motorists are responding to the huge choice and compelling offers available.”
Hawes warned that a tougher challenge lies ahead, adding: “August is a low-volume month, so September will be the acid test. The industry is doing everything it can to help drivers switch, but mandate targets must be grounded in the reality of demand.”
On the corporate front, BP (BP.L) confirmed it has agreed to meet with union-elected representatives of workers at its Whiting refinery in the United States following an approach from the United Steelworkers union.
The oil and gas giant is engaged in discussions around its latest pay package proposal, with the Federal Mediation and Conciliation Service potentially providing assistance during negotiations.
RBC Capital Markets also weighed in on BP, saying it expects the company to present an updated financial framework in the fourth quarter after a session with Chief Financial Officer Kate Thomson on Thursday.
RBC Capital stated: “We update our estimates today to reflect higher refining margins and enduring strength into 2027, which drives our 3Q and 2026-27E materially higher.”
The bank added that if marked to market for upstream and downstream operations, its third-quarter net income estimate for BP would be approximately $6.5 billion, well above the consensus figure of $4.3 billion.
BP shares edged down 0.24% by the close of trading on Friday, even as broader market moves remained subdued across London’s main index.