Sept. 16 (Bloomberg) -- U.K. Stocks including Reckitt Benckiser Plc and MAN Group Plc fell after retail sales rose unexpectedly in August, heightening concern over rising interest rates.

Kingfisher Plc gained after the world's third-largest home- improvement retailer said first-half profit gained 30 percent.

The benchmark FTSE 100 Index added 1, or less than 0.1 percent, to 4549.40 as of 1:13 p.m. in London, falling back from a gain of 0.3 percent earlier. The FTSE All-Share Index also rose less than 0.1 percent.

U.K. retail sales rebounded in August, suggesting five interest-rate increases since November haven't damped consumer spending. Sales rose 0.6 percent, erasing a decline of the same size in July, the National Statistics office in London said. Economists had expected sales to decline by 0.3 percent.

``The consumer is still clearly willing to spend, spend, and spend,'' John Butler, chief U.K. economist at HSBC, said in a research note. `` A material consumer slowdown will require higher interest rates. We still expect a November rate move, with more to come thereafter.''

Reckitt Benckiser, the world's biggest maker of household cleaners, fell 28 pence, or 1.9 percent, to 1,437 pence. Man Group, the world's largest publicly traded hedge fund company, declined 30 pence, or 2.2 percent, to 1,342 pence.

Philip Middleton, an analyst at Merrill Lynch & Co., cut his 2005 earnings per share estimate for Man Group by 6.8 percent to 95.6 pence.

Kingfisher rose 4.25 pence, or 1.5 percent, to 294.25 pence. It said first-half net income rose to 237.3 million pounds as it bought more cheaply from suppliers, revamped Astoria stores in France and expanded internationally.

To contact the reporter on this story: Bryce Elder in London at belder@bloomberg.net.

Last Updated: September 16, 2004 08:30 EDT