Britain's FTSE index falls on Greek concerns, drop in UK consumer confidence

* Blue-chip FTSE 100 index down 0.3 pct

* UK Gfk Survey, Greek concerns hit sentiment

* Associated British Foods (LSE: ABF.L - news) up on Goldman update

By Atul Prakash

LONDON, May 29 (Reuters) - Britain's top share index fell on Friday, with an unexpected drop in consumer morale in the United (Shenzhen: 000925.SZ - news) Kingdom and uncertainty regarding Greece's debt situation prompting investors to trim their trading positions.

The head of the International Monetary Fund, Christine (HKSE: 1210.HK - news) Lagarde, was quoted as saying that a Greek exit from the euro zone was possible, according to an advance extract of an interview in a German newspaper. However, analysts were wary of the comments after Frankfurter Allgemeine Zeitung did not include the quote in Friday's printed edition.

A Greek government spokesman said on Thursday that it intends to reach an agreement with its lenders on a cash-for-reforms deal by Sunday, brushing off comments from euro zone officials suggesting a deal was far from imminent.

"There is growing uncertainty about how Greece is going to manage its debt repayment, and with time running out, investors are getting concerned about a possible Greek exit," Securequity trader Jawaid Afsar said. "The British Gfk survey further dampened investor sentiment."

A survey from market research company GfK showed optimism about the British economic situation over the next 12 months fell to its lowest level since January, while Britons also become less upbeat about their personal financial prospects.

The blue-chip FTSE 100 index was down 0.3 percent at 0831 GMT. The index, however, was up about 1 percent this month, on track for a second straight month of gains.

Shares (Berlin: DI6.BE - news) bucking Friday's fall included Associated British Foods, owner of British Sugar and budget fashion retailer Primark, which gained 2.4 percent to 3,022 pence. Traders attributed the rise to Goldman Sachs (NYSE: GS-PB - news) lifting its rating on the share to "buy" from "sell" and increasing its price target to 3,120 pence from 2,755 pence.

"Our analysis of the U.S. market suggests that Primark's launch (due Autumn 2015) will be a success, particularly with the millennial consumer cohort, which is large and growing, has more value-oriented shopping habits, and prefers fast fashion to traditional department stores," Goldman Sachs said in a note. (Editing by Susan Fenton)