Omicron spread hits services Service sector activity fell to a ten-month low in December, according to the monthly IHS Markit/CIPS purchasing managers’ survey. The index fell to 53.6, from 58.5 in November, as the Omicron coronavirus variant took its toll on demand for travel, hospitality and leisure services. Tim Moore, economics director at IHS Markit, said December’s PMI reveals the UK economy is suffering from “a severe loss of momentum”. The news came as analysts at Capital Economics hiked their forecasts for inflation to peak at 7% this April forcing the Bank of England to raise interest rates four times this year, lifting them to 1.25%.