Companies have reported their fastest growth for two years, but supermarkets and the oil and gas industries weighed heavily on an otherwise encouraging performance, according to analysis by the Share Centre.
Consumers bought new homes and booked holidays, boosting airlines, travel companies, housebuilders and estate agents. TUI Travel, easyJet and Bellway Homes were singled out by the online stockbroker. Companies such as Compass and Wolseley, which sell their wares in the United States, also did well, thanks to the relative health of the world’s biggest economy and the strong dollar.
Overall, operating profits were up by 5.5 per cent to £10.1 billion on a like-for-like basis in the final quarter of last year, the fastest growth in any quarter for two years. The falling prices