PMI services hit by Omicron concerns

Omicron concerns hit the UK PMI services, as consumer confidence appears to have been hit.

• "Worst month for the UK economy since February as private sector output growth eased considerably in response to tighter pandemic restrictions and renewed business uncertainty. The slowdown was centred on the service sector, which more than offset a modest acceleration in manufacturing production at the end of 2021."
• In services: "Survey respondents widely cited a negative impact on consumer demand from tighter COVID-19 stringency measures and renewed travel restrictions. There were also reports that business uncertainty related to the Omicron variant had led to a reluctance to spend."
• "Optimism regarding the year ahead outlook for business activity eased for the fourth consecutive month in December. This largely reflected a slump in confidence among consumer-facing service providers."
• "Smallest rise in backlogs of work for nine months"
• "The latest increase in average cost burdens was much softer than November's survey-record high. At the same time, prices charged inflation moderated to its weakest since August. Reports from survey respondents highlighted that sharply rising wages, transport bills and raw material prices remained the main sources of cost inflation."