FTSE LIVE: Footsie rises as UK economy grows 0.6% thanks to strong services sector 

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14.00: The FTSE 100 is up 0.18 per cent or 13.15 points to 7,177.58 this afternoon, after official data revealed the UK economy grew in the last quarter of 2016.

Figures from the Office for National Statistics this morning showed the UK's economy grew by 0.6 per cent in the last few months of 2016, beating analyst forecasts of a 0.5 per cent rise.

Darren Morgan, head of GDP at the ONS, said: 'Strong consumer spending supported the expansion of the dominant services sector and although manufacturing bounced back from a weaker third quarter, both it and construction remained broadly unchanged over the year as a whole.'

Results: The FTSE 100 is up 0.18 per cent or 13.15 points to 7,177.58pp this afternoon

Against the US dollar, sterling is down 0.43 per cent to $1.2582, but up 0.01 per cent to €1.1759 against the euro.

Connor Campbell, of SpreadEx, said: 'It appears that the over-reliance on the services sector, which actually grew 0.8 per cent during the fourth quarter, may have spooked investors given that the resilience of consumer spending will be tested by the pressures of rising inflation as 2017 continues.'

'The pound has sold off on the GDP report, even though it beat expectations,' said City Index analyst Kathleen Brooks. 

This afternoon's top FTSE 100 riser is the Royal Bank of Scotland, which has seen its share price rise 4.40 per cent to 237.55p.

Falling just behind RBS is Guinness owner Diageo, enjoying a 4.34 per cent increase on its share price to 2,234.25p.

Sage Group is the biggest FTSE 100 faller, seeing its share price fall 5.13 per cent to 601.25p.  Unilever's shares are the second biggest faller, down 4.96 per cent to 3,182.50p, after posting a disappointing set of fourth quarter results.

On Wednesday, the Dow Jones rose to the 20,000 mark for the first time ever.

This afternoon, the Dow Jones is up 0.02 per cent to 20,072.25p. 

The number of Americans filing for unemployment benefits rose more than expected last week, the US Labour Department said today.

Initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 259,000 for the week ended January 21.

Rising: This afternoon's top FTSE 100 riser is the Royal Bank of Scotland

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