Companies reporting next week

APART from cold turkey and mince pies, there has been little for City traders to feast on in recent days. Although no companies are scheduled to report, the newsflow should pick up next week with Christmas trading statements and a number of economic releases set to test market confidence.

While manufacturers will be glad to see the back of 2001, there are precious few signs that fortunes will improve in the new year. The latest monthly survey by the Chartered Institute of Purchasing & Supply (CIPS) is widely expected to make further grim reading on Wednesday.

Last month, the overall activity index fell to its lowest level since January 1999, while new orders also slipped back.

David Page, economist at Investec bank, said: 'To our minds December does not look like it will be much better. There has been no evidence that global demand may be finding a bottom and we believe that UK manufacturing will continue to suffer while demand falls.'

CIPS will also provide an update on Friday into the extent the 11 September terrorist attacks have impacted upon the service sector. Reports of a buoyant December on the high street should help, although the sector has plenty of ground to make up after recording an all-time low activity index of 46.3 in October.

The figure for November rose slightly to 47.3 but the latest activity index - which includes hotels and restaurants - should still show the service sector is contracting.

All of which provides a slightly confusing picture for economists as recent GDP figures showed the service sector grew by 0.6% in the third quarter.

Fears that the housing boom is about to come to an end will be put to the test on Friday when household lending figures for November are issued.

Mortgage lending data for October comprehensively banished talk of a slowdown as Britons borrowed £5 billion - the third highest figure on record.

Significantly, new commitments - which give an indication of housing market activity in three months time - have only ever been bettered once before.

However, any marked drop in demand could raise concerns at the Bank of England and prompt one final quarter point rate cut to stave off post-Christmas blues.

Consumer credit numbers will also be released at the same time, although Investec bank expects the figures to have remained firm during November.

Consumer confidence data for December from market research firm GFK should show whether last month's improvement was a mere blip or represented a surge in optimism.

The confidence figure slipped from plus six in June to minus five in October but then rallied to minus three in the following month.

However, rising unemployment and a weak economic outlook threatens the revival and could drag consumer confidence lower in 2002.

The latest figure is due to be published on Friday.

Companies reporting in the week beginning December 31 include:

December 31
EGMs: Ransom (Wm) & Sons, Retail Decisions.

January 2
EGMs: Jacob Holdings

January 4
AGMs: MMT Computing

EGMs: Berry, Birch & Noble.