1:00PM New York, 5:00 PM London - U.K. manufacturing index unexpectedly rises in February but consumer confidence in March declines.

Market sentiment

In London trading FTSE 100 stocks fell 0.11% or 6.3 to 5,983.90.

Of the 102 stocks in FTSE 100 index 28 rose and 74 declined. Cairn Energy led advancers in the index with a rise of 4.48% followed by a rise in BG Group of 3.34%.

IMF cuts U.K growth forecast

The IMF in its World Economic Outlook slashed its UK growth forecast for the current fiscal year to 1.6% from earlier projection of 1.8%.

U.K. consumer confidence remains low

Nationwide Building Society reported today on its Web site that the Nationwide Consumer Confidence Index eased 1 point from February to 77 in March, reflecting “weakening house price growth and ongoing uncertainty in the financial markets”.

The Present Situation Index, which measures consumer sentiment about the current economic and employment situation, declined by two points to 74 in March from 76 in February as there was a downward shift in consumer perceptions of the current employment situation.

However the Expectations Index, which gauges how consumers feel about the economic and employment situation and their income in six months time, remained unchanged for the third straight time at 79.

Also the Spending Index, a measure that shows consumer sentiment about spending on household goods and major purchases, increased from 64 to 67 in March, due to an improvement in consumer sentiment regarding large ticket items such as a car or a house.

The report also noted that consumer expects that prices will increase 0.4% over the next six months. In February, consumers expected prices to decline 1.1% over the period.

U.K. manufacturing unexpectedly rises

The Office of National Statistics reported today that between January and February output of the manufacturing industries rose by 0.4%.

There were no significant increases but the largest marginal increases were in food, drink and tobacco industries, with increase of 0.5%. In the latest three months, manufacturing output increased by 0.3%.

Output of the electricity, gas and water supply industries increased by 0.3% but mining and quarrying output fell by 3.0% compared with the previous three months.

Gainers & Losers

Cairn Energy led gainers in the FTSE 100 index shares with a rise of 4.48% followed by increases in BG Group of 3.34%, in Vedanta Resources of 2.78%, in BHP Billiton Plc of 2.38%, and Anglo America Plc of 2.31%.

Commodity stocks gained after oil traded near $109 per barrel ahead of the release of the U.S. weekly inventories data.

Gold prices also consolidated above $900 level per troy ounce.