Markit’s preliminary UK manufacturing PMI index fell to 57.6 in December from 58.1 in November, matching the market’s expected result. This is its lowest level in three months.
The Preliminary PMI for services has fallen to 53.2 from 58.5, disappointing the expected result of the consensus, which placed it at 57. This is the lowest figure registered by the indicator in ten months, since February.
According to Markit, the sharp slowdown in UK private sector growth in December is due to the Omicron variant affecting spending on consumer services.
Chris Williamson, IHS Markit Chief Business Economistsaid: “Preliminary PMI data shows that the UK economy was hit again by COVID-19, with growth slowing sharply at the end of the year led by a sharp drop in spending on household services. More positive news came from the manufacturing industry, where easing of supply chain delays helped fuel production growth, but more importantly, it also helped ease some upward pressure on prices to hint. a peak of inflation “.
“As COVID-19 infections will rise further in the coming weeks due to the spread of the Omicron variant, and with the introduction of more restrictions, the pace of economic growth is likely to continue to weaken as we move into 2022. . The greatest uncertainty will be about how rising infection rates both at home and abroad could lead to further supply and labor shortages.And if this means that the reduction in inflationary pressures observed in December is frustratingly brief. “
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