The Ftse 100 has skyrocketed to a new record high following the publication of the latest gross domestic product (GDP) rate figures from the Office for National Statistics (ONS).
Earlier today, the ONS confirmed that GDP for the 12 months to November 2025 increased by 0.3 per cent, marking a win for the economy, primarily due to a stronger performance in the services sector and a rebound in car production.
By 3pm today, the UK’s primary stock market index had surged above 10,241 points with analysts claiming “optimism is swirling” around the British economy despite scrutiny over Chancellor Rachel Reeves’s agenda.
Susannah Streeter, the chief markets strategist at Wealth Club, cited movements in the housebuilding sector as being a major factor in bolstering investor confidence as of late.
Ftse 100 is eying up another record high close
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She explained: “The Footsie has hiked higher to new heights, again breaching fresh records. More optimism is swirling, helped by a calming of geopolitics and more clement conditions for the UK.
“With November’s snapshot of economic health more robust than expected, it’s put more spring in the step of listed companies linked to the domestic outlook. Even some downbeat numbers from Taylor Wimpey have not held back sentiment.
“After an early dip, shares in housebuilders have resurged in strength, looking past current conditions to a more hopeful future, helped by an easing of planning restrictions.
“Taylor Wimpey noted that there had already been increased momentum in recent planning permissions, and there is hope that this will continue as fast tracking of applications accelerates.
The City of London is happy with the stock market’s peformance
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PA“With the economy wriggling firmly out of recession territory, there’s also some expectation it’ll help boost consumer confidence. Marks and Spencer and Tesco are among the top gainers, helped by more encouraging sentiment about spending.
“With the economy growing, inflation cooling, and interest rates having also been cut, it may encourage households who’ve built up nest eggs of savings to be a bit more flash with their cash, supporting economic growth.
“With clear signs that Budget uncertainty is now in the rear-view mirror, the UK appears to be regaining a reputation of stability. That’s also likely to keep up investor interest in companies offering stable returns even in a volatile market, with utilities, insurers, and tobacco giants also among the gainers today.'”
Outside the UK, US stocks opened higher once trading opened this morning, with tech companies rebounding after yesterday’s sell-off. Nvidia and Broadcom are both up around two per cent, while AMD and Micron have both jumped almost four per cent.
The ‘Magnificent 7 stocks’ —Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla— are the primary drivers of the Nasdaq’s value | GETTY Overall, the Nasdaq has climbed 0.85 per cent in opening trades, with the S&P 500 and Dow Jones jumping 0.5 per cent and 0.25 per cent, respectively. Top risers in the S&P are all from the wider semiconductor sector: Applied Materials, KLA-Tencor, Lam Research, and ASML.
Among the biggest drops in the S&P include oil and gas firm APA, Devon Energy, and Occidental Petroleum. Back in Britain, analysts claim better-than-expected GDP figures could have beneficial consequences for businesses.
Kevin Brown, savings expert at Scottish Friendly, shared: “After months of disappointment, November’s GDP figures offer a much-needed and unexpected confidence boost.
“Given the headwinds facing businesses – from higher payroll taxes to growing geopolitical uncertainty – this recent data suggests that firms are starting to find their feet.”
How has GDP changed in the past year?
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ONS
However, Mr Brown urged investors to be wary of developing geopolitical tensions, including the protests and potential US military intervention in Iran, which could lead to market volatility.
He added: “Encouragingly, more up-to-date PMI data points to that momentum carrying into the end of the year, with manufacturing showing signs of a December rebound.
“That said, it’s important not to get carried away. While oil is well below where it was a year ago, the price has spiked in recent days following the unrest in Iran, one of the world’s largest oil producers.
“If the price continues to rise, it would lead to higher energy prices, which would hit manufacturers and derail their recent recover. This is something the Bank of England will be keeping a close eye on. “
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