Economists have cut their growth forecasts for next year, as cost rises and potential Covid restrictions curb optimism.
The CBI said that short-term headwinds, such as supply chain disruptions and inflation, had intensified since its last forecast in June.
Its economists are predicting 6.9% growth in GDP this year and 5.1% next, down from its June forecasts of 8.2% and 6.1% respectively.
KPMG’s economists said that GDP growth could more than halve next year if restrictions were introduced.
The spread of the Omicron variant has stoked fears of more supply disruptions and prolonged higher inflation.
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