The London stock market flirted with record levels yesterday as figures suggested Britain has emerged from recession.
In a welcome boost for investors with money in shares, ISAs and pensions, the FTSE 100 rose as high as 8,044 before giving up some of the gains to close up 0.9 per cent, or 71.78 points, at 7,995. 58.
That was close to the all-time high close: the 8,014 hit in February of last year.
On the rise: The FTSE 100 rose as high as 8,044 before giving back some gains to close up 0.9 per cent, or 71.78 points, at 7,995.58.
The rebound came as official figures showed the UK economy grew by 0.1 per cent in February this year, following an expansion of 0.3 per cent in January.
The report, from the Office for National Statistics, suggested the economy emerged from recession after contracting in the third and fourth quarters of last year.
Prime Minister Rishi Sunak said the figures were “further evidence that the economy has turned a corner”.
Conservative strategists are counting on a recovery in the economy – driven by falling inflation and tax cuts – to boost the party’s chances in the general election scheduled for later this year.
Susannah Streeter, an analyst at investment platform Hargreaves Lansdown, said growth in January and February “added to hopes that the UK recession is in the rear-view mirror”.