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* UK services PMI falls in August

* Retailers, personal goods drag FTSE 100

* Ashtead falls on grim annual revenue outlook

* FTSE 100 down 0.1%, FTSE 250 off 0.4%

Sept 5 (Reuters) - London stocks slid on Tuesday, led by retailers and personal goods shares after a barrage of data prompted worries about the demand prospects, while equipment rental firm Ashtead's shares fell on weak outlook.

The blue-chip FTSE 100 index was down 0.1% as of 0856 GMT, while the FTSE 250 index slipped 0.4%.

Data showed business activity in the UK services sector fell in August, while Asian and European markets came under pressure post soft readings in both China and the eurozone, projecting weak consumer demand.

Commodity-linked stocks fell, with industrial metal miners down about 0.5% after weak China data.

Across UK and Europe, retailers fell after brokerage J.P.Morgan cautioned on the European food retail sector, citing potential deflation in grocery prices. The subindex fell 1.4%, leading sectoral declines in the FTSE 100.

B&M European Value Retail fell 4.6% and Tesco lost 2.4%, after JPM downgraded both the retailers.

Also, Barclays data showed growth in British consumer spending lost pace last month, pushing the shares of personal goods makers down 0.9%.

"The cost of living headwinds are still strong and consumers are turning increasingly cautious," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"They're spending on smaller beauty items in some ways, but it's going to be a struggle for bigger ticket items."

Ashtead Group's shares fell over 2% and was among the top losers on the FTSE 100 after it lowered its annual UK rental revenue growth forecast, citing softening market conditions.

Shares of DS Smith fell 1.5% after the British cardboard maker said it was reducing

prices

for its packages.

(Reporting by Siddarth S in Bengaluru; Editing by Sonia Cheema and Dhanya Ann Thoppil)