(Reuters) - Activity in Russia's manufacturing sector grew marginally faster in May, a business survey showed on Monday, propelled by a sharp rise in employment as demand picked up.
The sector has now recorded expansion for 25 successive months.
The S&P Global Purchasing Managers' Index (PMI) for Russian manufacturing rose to 54.4 in May from 54.3 in April, staying above the 50 level that marks growth in activity and not far from an 18-year high of 55.7 in March.
Robust demand conditions supported increased output, though growth was once again predicated on domestic demand, with new export orders declining for the sixth time in the past seven months, albeit fractionally, S&P Global said.
Russia has been spending heavily on the manufacturing of military equipment and weapons since invading Ukraine in February 2022, buoying a sector that otherwise may have suffered as some markets shunned Moscow.
"Companies increased their workforce numbers amid greater production requirements, with many noting a rise in full-time employees," S&P Global said. "The rate of job creation quickened to the sharpest since September 1997."
Surveyed firms remained upbeat in their expectations for future output, though the degree of optimism slipped to a nine-month low.
"Anecdotal evidence suggested that confidence stemmed from hopes of new client wins and stronger demand conditions," S&P Global said.