Russian manufacturing sector grew in March at the fastest pace in about 18 years

A survey showed on Monday that Russia’s manufacturing sector activity grew at the fastest pace in nearly 18 years in March, thanks to the growth of new export business for the first time in five months.

According to Reuters, the Purchasing Managers’ Index for Russia’s manufacturing sector, issued by Standard & Poor’s, rose to 55.7 points in March from 54.7 in February, recording its highest reading above the 50-point level that separates growth from contraction since August 2006.

The sector’s recovery since the first months of the Russian invasion of Ukraine has depended largely on domestic demand because some markets avoided Russia.

Moscow spends heavily on manufacturing in particular, and also pumps money into the defense industry sector to increase military production.

Data last week showed that the defense industry stimulated greater-than-expected growth in industrial production during February.

The data also showed that new export orders grew for the first time since last October.