UPDATE 1-JP Morgan cuts Avery Dennison to neutral

(Recasts; adds details)

Oct 14 (Reuters) - JP Morgan Securities cut its rating on Avery Dennison Corp (AVY.N) to "neutral" from overweight" and said volume growth for the label and retail tag maker in 2009 was expected to be "flat at best."

Analyst Jeffrey Zekauskas said although the stock had outperformed the S&P 500 by 300 basis points this year, likely negative GDP growth in the US and similar negative trends in the European economies will probably place pressure on consumer spending over the next 12 months.

Zekauskas, who cut his full year EPS estimate on the company to $3.40 per share from $3.45, said he saw a 2 percent volume reduction in the company's office products segment.

Shares of the company Pasadena, California-based company closed at $37.88 Monday on the New York Stock Exchange. (Reporting by Arup Roychoudhury in Bangalore; Editing by Jarshad Kakkrakandy) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))