(Reuters) - Activity in Russia's manufacturing sector increased for the 13th month running in May and employment rose at its sharpest pace in more than two decades, though export orders contracted, a business survey showed on Thursday.
The S&P Global (NYSE:SPGI) Purchasing Managers' Index (PMI) for manufacturing rose to 53.5 from 52.6 in April, moving further above the 50 mark that separates expansion from contraction.
"Overall growth was supported by faster expansions in output and new orders, with employment rising at the sharpest pace for 22-1/2 years," S&P Global said in a statement.
Employment was driven by stronger client demand, a trend that also helped decrease work backlogs.
"The rate of job creation was the steepest since November 2000 as firms adjusted their workforce numbers upward amid greater production requirements," S&P Global said.
The sector's growth in the past year has been predicated on domestic demand, as new export orders have contracted stubbornly while Moscow pursues what it calls its "special military operation" in Ukraine.
Export orders expanded for the first time in more than a year in April, but returned to contraction in May.
"Manufacturers suggested that challenging demand conditions in key export markets hampered new export sales," S&P Global said.
Expectations for future output were positive, but lower than in April.
"Optimism reportedly stemmed from planned investment in new products and processes, alongside hopes of further upticks in client demand," S&P Global said.