LONDON, (Reuters) – The Omicron coronavirus spread has hampered British tourism and travel businesses this month. A survey revealed that private sector growth was at a 10-month low ahead of Thursday’s Bank of England policy announcement.

Initial “flash”, IHS Markit/CIPS United Composite Purchasing Managers’ Index (PMI), decreased to 53.2 from 57.6 during November.

Although still well above the 50 dividing lines between growth and recession, a Reuters poll by economists showed a stronger 56.4.

According to the survey, there was slower growth in new orders than in price pressures. This will be noted by rate-setters at the BoE who were able to access the PMI before their December policy decision. It is due to be made at 11:20 GMT.

Due to increased energy prices, and COVID-related supply chain bottlenecks, inflation rose globally in this year. The problems are compounded in Britain by post-Brexit migration and trade barriers.

While the BoE said that inflation pressures will be reduced by raising interest rates, it held back on an expected decision last month as it was uncertain about the effects of ending the government’s furlough scheme.

The data showed that there was no impact on the labor market. However, Thursday’s PMI indicated that the Omicron variant is causing a slowdown in economic growth. There are restrictions being put in place to limit its spread. This could be the biggest downside.

Chris Williamson is chief economist for IHS Markit. He stated, “Activity dropped sharply in the hotel, restaurant, travel, and transport sectors and ground to an halt in any other consumer-facing businesses.”

As we enter 2022, the pace of economic growth is likely to slow down.

PMI (Services Sector PMI) fell dramatically to 53.2 from 58.5 in November. The December reading was the lowest since February.

Survey’s index of optimism fell to a low 14-month high

IHS Markit reported that concerns about pandemic restrictions for a prolonged period and subsequent damage to consumer and business confidence were affecting growth projections for 2022.

This month, manufacturers have done better.

A decrease in supply chain difficulties that have lasted for more than one year has led to an increase in factory PMI output index to 53.3 in December, from 52.7 November. It was four months high.

However, export orders fell again.

IHS Markit reported that “Brexit-related Trade Problems featured prominently in comments from survey respondents which saw a decline in export sales during December.”