The US government shutdown has seen the value of the pound rise further against the dollar, up to around $1.3465 to £1 on Wednesday. Stock markets have also risen, with the FTSE 100 up 0.7 per cent in morning trading to new record intraday highs.
In wider economic data affecting the UK, manufacturing was down in September as expected, following on from news earlier in the week that GDP rose only 0.3 per cent in the second quarter of the year. Meanwhile, house prices rose once more in September following August’s slight decline, with year-on-year growth at 2.2 per cent across the UK.
Elsewhere, sales at Greggs slowed over the hot summer months and business confidence across the nation dropped, as Budget uncertainty continues to weigh on consumers and firms alike.
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Key points
- UK manufacturing activity falls in September
- Business confidence hits historic low
- Pound strengthens against the US dollar, £1 : $1.3465
- FTSE 100 hits new intraday record high
House prices on the rise again – but one property type is bucking the trend
16:00 , Karl MatchettProperty prices in the UK rose once more in September, following August’s slight fall – but new figures show flats remain out of favour with buyers.
Nationwide data shows prices are up 0.5 per cent month to month, keeping annual prices rising at 2.2 per cent.
But the statistics show there are major differences in price changes between the north and south of the UK, as well as in the property type.
Semi-detached properties rose 3.4 per cent over the last 12 months, while detached (2.5 per cent) and terraced (2.4 per cent) saw slightly slower price rises. The cost of flats continues to decline, seeing average prices fall by 0.3 per cent.
House prices on the rise again – but one property type is bucking the trend
Business and Money live - 1 October
10:50 , Karl MatchettMorning all, new economic data this week continues to paint a general picture of slow, perhaps grudging, growth in multiple areas - but not manufacturing.
We saw in GDP data that it had been hit in the second quarter and more numbers today back that up.
Let’s get into it.
Manufacturing falls in 'worrying news' for industry
10:58 , Karl MatchettThe latest data on UK manufacturing PMI from S&P shows a September slowdown, hot on the heels of ONS’ data showing the sector fell in the second three months of the year.
Rob Dobson, director at S&P Global Market Intelligence, said: “The final Manufacturing PMI results provide further worrying news for the health of UK industry.”
Commenting on what it might mean going forward, Mike Thornton, head of industrials at RSM UK, said: “The latest fall in manufacturing activity in September was another blow for the sector, showing a continued downward trend rather than a seasonal dip in August.
“The output index has dropped to 45.7, the lowest level since March, signalling a sharp slowdown in production levels as weak demand, falling new orders and subdued export activity continue to weigh heavily on the sector.
“This sustained contraction suggests manufacturers are scaling back operations to mitigate deteriorating market conditions, with little sign of a rebound in the short term. Businesses should therefore expect a stagnant outlook for the remainder of the year.”
UK business confidence plunges to lowest level on record
11:02 , Karl MatchettBusiness confidence slumped to its lowest level on record last month amid concerns over soaring costs, according to a new survey of company bosses.
Data from the Institute of Directors (IoD) showed that firms said higher labour costs has been the biggest contributor to growing pessimism about the economy.
The industry group’s monthly economic confidence index, which measures business leader optimism about the prospects of the UK economy, posted a minus 74 reading for September.
It marked a significant decline from minus 61 and struck the lowest level since the index was launched more than nine years ago.
Pound strengthens against the dollar after government shutdown
11:20 , Karl MatchettThe US government is now in shutdown, with the two parties not managing to agree a funding plan.
While stock markets have generally not reacted too much to this outcome - futures show the S&P 500 down about 0.5 per cent - the dollar has weakened further.
That means you are right now getting more for your money if you are heading to the US.
£1 is now $1.3465, up almost 0.2 per cent today.
It was slightly higher earlier and we can expect a little more movement across the day.
At the start of the year it was $1.2521 - it’s up more than 7.3 per cent since then.
FTSE 100 surges to new record high
11:40 , Karl MatchettThe City is cheering new FTSE 100 highs today, as the benchmark index topped 9,400 points for the first time ever.
After rising 0.7 per cent this morning, it’s currently around 9,414 points.
The highest risers include pharma trio AstraZeneca (up 6.1%), Hikma (3.6%) and GSK (2.5%).
“AstraZeneca, Hikma and GSK rallied after Donald Trump announced plans to launch a government-run website for consumers to buy drugs directly from manufacturers. It looks like investors are regaining confidence in the pharma sector following recent uncertainty around pricing and tariffs. More clarity on both points is helping to regain investors’ interest,” explained Russ Mould, investment director at AJ Bell.
Greggs sales growth cools after July heatwave deters consumers
12:00 , Karl MatchettGreggs has revealed its sales rose in recent months but blamed unusually hot July weather and a tough consumer backdrop for a slowdown in growth.
The high street bakery chain, with 2,675 shops in the UK, has continued to expand its sprawling estate across the country.
It reported a 6.1% increase in sales over the third quarter of 2025, compared with the same period a year ago.
On a like-for-like basis, which strips out the impact of new shop openings, sales growth across company-managed shops slowed to 1.5% year on year.
Greggs sales growth cools after July heatwave deters consumers
Key deadline approaching if you have a side hustle
12:20 , Karl MatchettAnother reminder that 5 October is fast approaching - and that’s the deadline to register for self assessment if you have a side hustle and your income from it is beyond £1000.
To put that in perspective if you’re on Vinted, eBay and anywhere else - that’s only an average of £20 a week means you surpass that threshold.
Kate Steere, money expert at Finder, said: “Side hustles are becoming increasingly popular as household budgets are squeezed by inflation, but many people don’t realise they could be liable for tax even if they’re earning a relatively small amount on the side each month. All it takes is earning more than £80 a month, and you’ve exceeded the £1,000 yearly limit.
“If you’re in this boat, while you don’t need to submit your tax return until the end of January, you do need to register for Self Assessment before 5 October.
“Miss this, and you could face a failure-to-notify penalty. While you’re at it, why not give your future self a break by opening a dedicated business account? Separating your personal finances from your side hustle income will make the whole process that much smoother when it comes to filing your tax return.”
Young adults turn to TikTok more than uni for financial information
12:40 , Karl MatchettCredit card firm Aqua have released results of a survey of 500 young adults (18-24 year olds) and, while a small sample size, the results are eye opening.
The top financial lessons they wish they’d known earlier are ‘how to invest’ (21%), ‘how to budget’ (19%) and detail around what credit scores mean (18%).
Perhaps more notable is where they are going for this.
18-24-year-olds are more likely to turn to TikTok (22.2%) than to their university (15.8%) for financial guidance, reads the report.
Good that they are going out and trying to find the information, of course, but be wary on social media - there’s a lot of misinformed or outright incorrect stuff on there.
Always ensure you’re using reputable accounts, persons or companies if that’s where you go for info.
Aqua’s Sharvan Selvam said: “These results show that many young people feel underprepared when it comes to managing their money, especially around credit and budgeting. It’s worrying to see such high levels of stress around finances at such a formative stage in life, and it highlights the need for more practical, accessible guidance.”
Royal Mail to take over thousands of UK convenience stores
13:00 , Karl MatchettRoyal Mail’s owner has bought a multi-million pound stake in another firm, which will see thousands of convenience stores rebranded.
International Distribution Services (IDS), the firm which owns the postal service, has concluded a purchase of 49 per cent of shares in parcel company Collect+, with part of the deal meaning about 8,000 stores will now be branded Royal Mail.
It means high street stores will sell postage over the counter and customers can pay bills in person rather than only online.
The deal, which is worth £43.9m, will also see self-service kiosks installed in some shops next year, extended opening hours including weekends and evenings – plus retaining the normal operations of Collect+, which include sending and returning parcels from other carriers.
Brits opt for mobile phone payments as cash usage declines
13:20 , PAMobile contactless payments are now regularly used by half of all UK adults, a new report reveals, as cash transactions plummeted to less than 10 per cent of all payments for the first time.
Figures from UK Finance show cash comprised just 9 per cent of payments in 2024, a stark decline from 23 per cent in 2019 and nearly half (48 per cent) a decade earlier in 2014.
The banking and finance industry body highlighted a growing reliance on phones, watches, and other mobile devices for managing finances and making purchases.
Last year, 57 per cent of adults were registered for mobile wallets, a significant increase from 42 per cent in 2023.
House prices on the rise again – but one property type is bucking the trend
13:40 , Karl MatchettProperty prices in the UK rose once more in September, following August’s slight fall – but new figures show flats remain out of favour with buyers.
Nationwide data shows prices are up 0.5 per cent month to month, keeping annual prices rising at 2.2 per cent.
But the statistics show there major differences in price changes between the north and south of the UK, as well as in the property type.
Semi-detached properties rose 3.4 per cent over the last 12 months, while detached (2.5 per cent) and terraced (2.4 per cent) saw slightly slower price rises. The cost of flats continue to be in decline, seeing average prices fall by 0.3 per cent.
House prices on the rise again – but one property type is bucking the trend
JP Morgan personal investing brand to replace Nutmeg
14:10 , Karl MatchettJPMorganChase is set to revamp its investments offering in the UK this autumn, with plans to further ramp up competition in the market with the launch of a new DIY investment service next year.
Wealth management and investment business JP Morgan Personal Investing will replace the firm’s digital wealth manager Nutmeg, and will be available as a standalone offering as well as via the Chase UK app, the US-based financial services firm said.
The launch will take place in November and the Nutmeg brand, which launched in 2012 and manages investments on behalf of more than 265,000 investors will be “retired”. Nutmeg was acquired by JPMorganChase in 2021.
JP Morgan personal investing brand set to launch in the UK in November
Why demand has fallen for homes priced at more than £500,000
15:00 , Karl MatchettHomebuyer demand for properties priced at more than £500,000 has softened, according to property portal Zoopla.
Based on buyer enquiries, demand for properties priced above that amount has fallen in recent weeks by 4 per cent, with a 7 per cent decrease in new listings, compared with a year ago.
After analysing the five weeks to 21 September and comparing that data with the same period a year earlier, Zoopla also found that the demand for homes priced at more than £1m had also fallen by 11 per cent, while new listings were down by 9 per cent.
Full details here from PA.
