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London Shares End Week Little Changed as Construction Downturn Persists

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British equities closed little changed on Friday, with the FTSE 100 index 0.03% in the red, as the downturn in the country's construction sector continued in August.

The S&P Global UK Construction PMI was 44.3 in August, compared with 44.7 in the prior month and the consensus estimate of 45.8, marking the 20th straight month below the neutral 50 threshold.

"UK construction companies experienced another solid reduction in output volumes, with a faster downturn in house building the main reason for a weaker overall performance during August. A sharp and accelerated drop in residential activity more than offset slower falls in the commercial and civil engineering sub-sectors," commented S&P Global Market Intelligence Economics Director Tim Moore.

In other news, new car registrations in the UK rose for the ninth consecutive month in August, with 94,236 new cars added to the country's roads, marking an increase of 13.7% year over year, according to the Society of Motor Manufacturers and Traders.

"August was a bright spot for the new car market and another strong month for electric car uptake, showing that motorists are responding to the huge choice and compelling offers available. But August is a low-volume month, so September will be the acid test. The industry is doing everything it can to help drivers switch, but mandate targets must be grounded in the reality of demand," said SMMT Chief Executive Mike Hawes.

On the corporate front, BP (BP.L) said it agreed to meet with union-elected representatives of workers at its Whiting refinery in the US. The oil and gas company received a response from the United Steelworkers union amid efforts to engage in discussions of its latest pay package proposal, possibly with assistance from the Federal Mediation and Conciliation Service.

Meanwhile, RBC Capital Markets expects BP to present an updated financial framework in the fourth quarter following a session with the company's Chief Financial Officer Kate Thomson on Thursday. "We update our estimates today to reflect higher refining margins and enduring strength into 2027, which drives our 3Q and 2026-27E materially higher. If we were to mark-to-market for the upstream and downstream, our 3Q net income estimate would be ~$6.5bn (consensus $4.3bn)," RBC Capital added. At closing, BP shares declined 0.24%.

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