Russia's Services Sector Growth Masks Staffing Cuts
Russia's services sector expanded in December at its fastest pace since January, driven by strong new orders. However, this growth coincided with a reduction in staffing at the fastest rate in nearly three years, indicating waning business confidence.
In a striking contradiction, Russia's services sector experienced significant expansion in December while simultaneously undergoing the fastest staffing reduction in nearly three years. According to the S&P Global Russia Services PMI Business Activity Index, the sector's reading edged up to 52.3 from 52.2 in November, indicating growth driven by robust new orders. Yet, this apparent prosperity was overshadowed by a decline in employment, primarily due to a decrease in full-time workers.
