London pre-open: Stocks seen up as economy returns to growth

(Sharecast News) - London stocks were set to rise at the open on Thursday as figures showed the UK economy returned to growth in November last year. The FTSE 100 was called to open around 22 points higher.

Data released earlier by the Office for National Statistics showed the economy grew 0.1% in November following contractions of 0.1% in October and September, although this was below expectations of 0.2% growth.

Liz McKeown, director of economic statistics at the ONS, said: "The economy continues to be broadly flat, having grown slightly in November following two small falls in the previous months.

"Services grew a little, with wholesaling, pubs and restaurants and IT companies all doing well, partially offset by falls in accountancy and business rental and leasing.

"Construction also grew led by new commercial developments, while production continued to decline in November with further falls across a range of manufacturing industries and oil and gas extraction."

In corporate news, Premier Inn owner Whitbread held full-year guidance and said UK accommodation sales in the Christmas/New Year period were up 2%.

In a third quarter trading update, Whitbread said total group sales fell 2% to £763m. Trading improved during the quarter resulting in total accommodation sales broadly in line with last year, while total revenue per available room - a key industry metric - was down 3%.

Pearson reported 3% underlying group sales growth for 2024 in an update, flagging expected adjusted operating profit of £595m to £600m, up 10% year-on-year, with a margin of 16.8%.

The education publisher said it exceeded its free cash flow conversion target, and delivered on its strategic priorities including advancing AI initiatives during the year, launching an AI-powered digital language tutor.