UK GDP Revised Higher; Ireland Surplus Falls

Arthi Gupta
27 Aug, 2010
New York City

The UK indexes rose after an upwardly revised GDP growth of 1.2% in the second quarter and service sector index rose 1.4%. Irish trade surplus narrowed in June. Exports increased 1% on an annual basis to

[R]4:30 PM London – The UK indexes rose after an upwardly revised GDP growth of 1.2% in the second quarter and service sector index rose 1.4%. Irish trade surplus narrowed in June. Exports increased 1% on an annual basis to €7.27 billion in June, while imports grew 9% to €4.0 billion.[/R]

In London, FTSE 100 Index traded higher 21.29 or 0.41% to 5,177.13 and the pound edged lower to close at $1.5518.

The UK economy grew at its fastest pace since 2001 in the second quarter. The UK economy grew 1.2% sequentially in the second quarter, revised up from 1.1%, the Office for National Statistics said today. Gross domestic product was 1.7% higher than the second quarter of 2009.

The upward revision in GDP growth was largely led by the construction sector, where growth was revised to 8.5% from 6.6% in the previous estimate.

The UK''s service industry output increased in June largely due to higher output in business services and finance companies, according to figures released today.

The Office for National Statistics said services output increased 1.4% in June compared to a year earlier. This followed a 2.3% increase in the prior month. On a monthly basis, the UK services output dropped 0.5% in June.

Output in business services and finance rose 1.7%, distribution climbed 4.2%, and hotels & restaurants edged higher 0.9%.

Irish trade surplus narrowed in June from May. The trade surplus declined to €3.22 billion in June, compared to a €4.02 billion surplus in May, the Central Statistics Office reported today.

Exports increased 1% on an annual basis to €7.27 billion in June, while imports grew 9% to €4.0 billion. Month-on-month, exports dropped a seasonally adjusted 5% in June, while imports increased 12%.

Home prices in England and Wales increased at a slower pace in July, according to a report released by the Land Registry today.

Home prices increased 6.7% on an annual basis in July for the ninth consecutive month. Month-on-month, home prices climbed 0.4% in July, the strongest growth seen since January 2010, the agency said. The average value of a property in England and Wales totaled £166,798.

Optare Plc won an order valued at over £2.7 million from Transdev London for the supply of 17 of its Tempo low-weight, heavy-duty, single-decker model.

The 12 meter, two-door Tempos will be to a comprehensive TfL specification that includes air-conditioning and seating for 34 passengers plus 46 standees and will be fully DDA compliant. Transdev will use the buses on their H37 route connecting Hounslow with Richmond via Isleworth.

Gainers & Losers

AGA Rangemaster Group plc soared 5.26% to 90.00 pence after the branded consumer goods and kitchenware marketer said first-half revenue increased 5% to £123.4 million from £117.8 million in the comparable period, with growth at its iconic brands, AGA and Rangemaster. Net profit generated in the period was £12.1 million or 17.6 pence per share compared to net loss of £2.4 million or 2.3 pence per share in the year-earlier period.

Computacenter plc climbed 1.38% to 280.00 pence after the IT infrastructure services provider reported first-half group revenues increased 5.4% to £1.29 billion from £1.22 billion last year. Net profit in the period rose 68% to £15.76 million or 10.3 pence per share compared to net profit of £9.40 million or 6.3 pence per share in the year-ago period.

Dana Petroleum Plc rose 0.06% to 1,807.00 pence after the oil and gas company reported first-half revenues rose 12.5% to £185.67 million from £165.11 million in the comparable period a year earlier. Net profit in the period was £31.36 million or 33.68 pence per share, compared to a net loss of £3.59 million or 0.72 pence per share last year.

Lavendon Group plc plummeted 17.84% to 43.75 pence after the provider of powered aerial work platforms for rent stated first-half revenue dipped 7% to £105.97 million from £114.01 million in the comparable period of last year. Net loss in the period narrowed 99% to £0.23 million or 0.14 pence per share compared to net loss of £36.52 million or 77.20 pence per share in the prior year.

Rightmove plc gained 0.56% to 625.50 pence after the residential property Web site stated first-half revenue from continuing operations soared 26% to £39.22 million from £31.24 million in the previous year. Net profit in the period surged 170% to £35.07 million or 31.25 pence per share compared to net income of £13.01 million or 11.90 pence per share last year.

Rotala Plc slumped 3.86% to 39.90 pence after the company engaged in offering bus, coach and transport management solutions stated first-half pre-tax profit improved 5.3% to £0.80 million from £0.76 million a year ago. Turnover for the six months grew 23% to £22.51 million from £18.33 million in the comparable period.