MNI BRIEF: BOE Survey Sees Omicron Hit To Investment, Sales

The Bank of England's December Decision Marker Panel survey found that businesses expected the latest Omicron-driven Covid wave to hit investment and that firms also reported high levels of difficulty recruiting staff.

The latest survey of firms highlighted the point that Covid has delivered a hefty supply side shock. In the Dec survey firms estimated that Q4 2021 sales would be 7% lower than they would have been absent Covid, while investment was estimated at 11% lower and employment 5% lower.

In Q1 sales were again seen down 7%, easing to down 4% in Q2, with investment in Q1 seen some 10% lower than it would have been without Covid and 5% lower in Q2. In Dec 86% of firms found it harder than normal to recruit new employees with high rates of staff absence.