The spread of the Omicron mutation has hit British hospitality and travel companies this month, sending private sector growth to a 10-month low.
Preliminary data for the IHS Markit composite PMI fell to 53.2 points in December from 57.6 points in November.
Although it remains above the 50 points that separate growth from the recession, economists expected the index to reach 56.4 points.
The survey showed slower growth in new orders and price pressures – something that will have been highlighted by BoE policy makers ahead of today’s meeting.
Inflation has risen globally this year due to higher energy prices and supply chain problems related to the coronavirus.
In Britain, post-Brexit problems with trade and immigration have also exacerbated the situation.
BoE has said interest rates should almost certainly be raised to ease inflationary pressures, but did not raise them last month due to uncertainty about the impact of the end of the government’s job support program.
The PMI for the services sector fell sharply to 53.2 points in December from 58.5 points in November, the lowest level since February and lower than the estimates of 57 points.
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Source From: Capital
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