April 25 (Reuters) -ICE cotton futures were little changed on Thursday, as a strong weekly export sales report countered a downbeat sentiment in the wider financial markets and a firm U.S. dollar.

* Cotton contracts for July CTc2 were mostly unchanged at 81.03 cents per lb by 12:38 p.m. ET (1638 GMT).

* "We have a little bit of conflicting information, which is keeping prices flat," said Bailey Thomen, cotton risk management consultant at StoneX Group.

* "We have a pretty strong export sales report... but then on the other hand, we have some macroeconomic data, which was a little bit bearish today, including the GDP number for the U.S. and some inflation figures which were not as optimistic."

* The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 177,100 running bales for 2023/2024, up 21% from the previous week and 73% from the prior four-week average. EXP/COT

* The report also showed exports of 261,700 running bales, down 2% from the previous week and 18% from the prior four-week average.

* Weighing on sentiment, U.S. stocks slumped amid signs of persistent inflation that dampened hopes of the Federal Reserve easing monetary policy anytime soon.

* The U.S. dollar gained after the hotter-than-expected inflation reading for the first quarter, making cotton more expensive, especially for overseas buyers. USD/

* "There's been a lot of demand coming from China for the past couple of weeks or months... but there's some concern that maybe they have restocked for what they need for now, and there may not be as much buying in the near future," Thommen added.

* Meanwhile, oil prices edged down after slower economic growth in the first quarter added to concerns about retreating fuel demand in the United States. O/R

* Lower oil prices make cotton-substitute polyester less expensive.

Reporting by Anjana Anil and Brijesh Patel in Bengaluru; Editing by Tasim Zahid