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Updated at 1540 GMT

By Khushi Singh

Sept 2 (Reuters) -UK's main stock index ended lower on Monday, weakened by a sell-off in aerospace-defence and personal-goods shares, while real estate shares surged on a bid for property portal Rightmove, capping losses.

The blue-chip FTSE 100 index .FTSE fell by 0.2%, after hitting a three-month high Friday and logging its third straight weekly rise.

Aerospace and defence .FTNMX502010 index tumbled 4.1%, its biggest one-day fall in nearly a year and half, weighed by a 6.5% drop in aerospace engineer Rolls-Royce RR.L.

Europe's aerospace and defence .SXPARO index was also down2.4%, marking its biggestdrop in a month.

The personal goods .FTNMX402040 index slipped 1.9% after Bofa Global Research slashed its price target on sectoral giants. Luxury retailerBurberry BRBY.L fell 0.7% while watch retailerWatches of Switzerland Group WOSG.L lost 4.8% following the cut.

By contrast, real estate .FTUB3510 advanced 2.6% as the top sectoral performer owing to a 27.4% jump in shares of Britain's largest property portal Rightmove RMV.L.

Rightmove touched its highestlevel since March 2022 as REA Group REA.AX said it wasconsidering an offerfor the portal.

British factories enjoyed their strongest month in more than two years in August as demand at home offset a fall in exports.

The Bank of England is expected to keep interest rates on hold this month before cutting them in November for only the second time since 2020.

A PMI for the dominant services sector is due on Wednesday, while producer prices and retail sales are some of the key data on investors' Europe watch list.

U.S. employment data, including the payrolls report for August, could help determine the size of an all-but-certain September interest rate cut by the Federal Reserve.

The domestically focused mid-cap FTSE 250 .FTMC slipped 0.5, led by a 14.3% fall in Kainos Group KNOS.L after the IT services providerforecast annual revenue to dip below market estimates.

Reporting by Khushi Singh, Ankika Biswas in Bengaluru; Editing by Sonia Cheema and Mark Heinrich

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