THE RETURN of Covid-19 restrictions in December put a chill into the
Brits were encouraged to work from home and limit socialising in December in what appears to have been a failed attempt to limit the spread of the new Omicron variant.
The calls ignited a mass exodus from city centres and high streets, dealing a heavy blow to the
The British services industry notched its worst month for growth in nearly a year, according to
Activity plunged to 53.6 in December, down sharply from 58.5 in November. While any number above 50 indicates growth, it represents a clear slowdown in a vital economic sector.
The news came as City analysts yesterday warned the British economy will struggle to get out of the mire in the coming year.
Experts at Capital Economics, a consultancy, hiked their forecasts for inflation to peak at seven per cent this April, more than triple the
Worryingly, inflation will not even come close to the Bank's two per cent target in 2022, staying at four per cent next Christmas, and could even remain above target next year.
In response to rip roaring inflation, the Bank will hoist interest rates four times this year, lifting them to 1.25 per cent, the highest level since
The consistent sky-high cost of living throughout this year will mean that "household real disposable incomes will be squeezed," triggering a sharp pull back in consumer spending and tamping down on growth, warned
The
However, the economy could be shrinking right now, experts warned.
It may even contract 0.3 per cent in January, Dickens said.
(c) 2022 City A.M., source