The exporter-heavy FTSE 100 inched up 0.1% after its strongest close in more than nine months on Tuesday.

The mid-cap FTSE 250 index rose nearly 0.2%.

British gross domestic product grew in January by 0.2% month-on-month, in line with economists' expectations, boosted by a rebound in retailing and house-building.

The numbers offered some relief to Prime Minister Rishi Sunak ahead of an election expected this year as the country entered a shallow recession in the second half of 2023.

"Seeing a positive momentum for the UK economy right out of January suggests that recession is firmly in the rearview mirror. That mythical soft landing that we've all been talking about seems to be within reach," said Danni Hewson, head of financial analysis at AJ Bell.

"Because of this potential soft landing, the Bank of England won't have to cut quite as swiftly as markets might have expected if the economy had stayed in recession."

Investors added to their bets of a rate cut in June, although the first one is not fully priced in until August.

Among single stocks, Metro Bank inched up 0.3% after the lender posted a smaller annual loss, supported by its cost-cutting efforts and as outflows stabilised towards the end of the year.

Balfour Beatty surged about 7.5%, on track for its biggest one-day gain since August 2022, as the infrastructure firm reported a better-than-expected full-year revenue and announced share buyback plans.

Shares of Flutter Entertainment Plc added 1.6% after JP Morgan upgraded the gambling group to "overweight" from "neutral", while Man Group rose 4%, with traders pointing to an upgrade from BofA Global Research.

London-listed shares of Hochschild Mining dipped 4%, following the 2024 production outlook, while Glencore climbed 2% after Deutsche Bank upgraded the miner to "buy" from "hold".

(Reporting by Pranav Kashyap and Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips and Sohini Goswami)

By Sruthi Shankar and Pranav Kashyap