LONDON, (Reuters) – British companies have experienced their lowest growth rate since earlier in the year when the country was locked down. They expect a slowdown to continue into 2022, according to the Confederation of British Industry.

CBI’s monthly indicator of growth – which includes surveys from retailers, manufacturers and other service companies – dropped 11 points to +21 during the three-months to December. This is the lowest level since April.

The Omicron version of the coronavirus is expected to impact the economy and slow down growth.

CBI Lead Economist Alpesh Paleja stated that “Substantial problems remain for businesses going into Christmas: labour shortages and rising costs are restricting businesses ability to trade during the crucial period.”

Boris Johnson the Prime Minister has stated that new COVID restrictions will be not implemented in England until Christmas, but that it is possible that he may have to take action after. Wales and Scotland have increased controls.

Alpesh claimed that Rishi, Finance Minister of India ($1.33 Billion)’s Tuesday announcement to support hospitality and leisure businesses would create breathing space.

“But, with the potential for further measures still being weighed on firms. The government must monitor this situation closely and ensure any new restrictions go in lockstep with additional targeted cashflow support.” he stated.

The CBI’s growth gauge was still well above the long-run average (+4.) despite the slowdown

The only industry that saw an acceleration of growth was manufacturing, which experienced a 33% increase over the previous three months. The CBI reported that growth was slow in all areas, including business, professional, and consumer services.

($1 = 0.7510 pounds)