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FTSE 100 down 0.2%, FTSE 250 falls 0.5%

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UK firms report strongest activity in a year in August

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WH Smith ( WHTPF ) slumps after cutting profit forecast

By Ragini Mathur

Aug 21 (Reuters) - Britain's main stock indexes declined

on Thursday, dragged by losses in consumer-related shares, while

global investors turned their attention to the U.S. Federal

Reserve's annual symposium in Jackson Hole.

As of 1016 GMT, the blue-chip FTSE 100 was down

0.2%, and the midcap index FTSE 250 declined 0.5%.

The three-day gathering of central bankers is set to begin

later in the day, with investors particularly focused on Fed

Chair Jerome Powell's Friday speech for signals about a

potential interest rate cut in September.

In the UK markets, consumer shares fell 0.3%,

weighing on the stock indexes.

Healthcare shares also declined 0.4%.

Travel retailer WH Smith ( WHTPF ) slumped 41.7% and was on

track for its worst single-day decline on record, after it

lowered annual profit outlook.

Stocks including InterContinental Hotels Group ( IHG ),

Schroders ( SHNWF ), Entain ( GMVHF ) and Mondi ( MNODF ) fell as

they traded ex-dividend.

The pullback comes a day after the FTSE 100 hit a record

close, benefiting from a market rotation away from technology

stocks that had triggered a selloff on Wall Street earlier this

week.

"While the FTSE's lack of tech stocks meant it has

underperformed in recent years, the recent rotation into value

has put the wind in the FTSE's sails," said Fiona Cincotta,

senior market analyst at City Index.

Supporting the gains on Thursday, aerospace and defence

companies rose 1.1%.

Energy sector added 0.5% as oil prices

gained, bolstered by signs of strong demand in the U.S. and

uncertainty over efforts to end the war in Ukraine.

On the economic data front, PMI figures for August revealed

the British businesses are having their strongest month in a

year thanks to a rebound in the dominant services sector.

Additionally, Britain's public borrowing in the financial

year so far has matched forecasts underpinning the government's

tax and spending plans.