UPDATE 1-FTSE dragged lower by WPP results, weak factory data

* FTSE dips 0.8 pct

* WPP suffers worst since Aug. 2017(For a live blog on European stocks, type LIVE/ in an Eikonnews window)

By Tom Pfeiffer

LONDON, March 1 (Reuters) - UK shares fell on Thursday afteradvertising giant WPP reported its worst results sincethe financial crisis and a gauge of British factory activityfell to its weakest in eight months.

Investors have been on edge in recent weeks over concernsthat rising interest rates in advanced economies, led by theUnited States, could sap global growth.

The FTSE fell 0.8 percent to 7,175.6 points, withthe decline accelerating after the Purchasing Managers' Indexsurvey data showed February manufacturing output expanded moreslowly despite a marked upturn in orders.

Worries that Britain will not secure an EU exit transitiondeal also weighed on sentiment, with Brussels' chief Brexitnegotiator on Thursday calling on the UK to "pick up the pace"of negotiations so that a withdrawal treaty could be agreed thisautumn and ratified by March.

WPP, one of Britain's biggest companies, has suffered asmajor consumer goods clients cut spending and as Google,Facebook and consultants Accenture encroached onto itsterritory.

Its shares slumped 8.2 percent, marking its worst day sinceAugust 2017 and wiping 1.4 billion pounds off its market value.The results and gloomy comments on the business outlookcontrasted with more upbeat guidance from peers Omnicom,IPG and Publicis.

Rentokil Initial shares tumbled 9.1 percent afterdisclosing its results, which analysts said were in line withexpectations but showed slower growth and the need for furtherdigital investments this year.

Rio Tinto and RSA Insurance, tradingex-dividend, fell 3.7 percent and 2.1 percent respectively.

Luxury goods maker Burberry jumped 3.8 percentafter it named Riccardo Tisci as its new chief creative officer,replacing Christopher Bailey. Exane BNP Paribas saw theappointment as positive, pointing to Tisci's "strong trackrecord".(Editing by Janet Lawrence and Tom Balmforth)