Sept 2 Reuters Activity in Russia39;s manufacturing sector grew at its slowest pace in over a year in August, a business survey showed on Monday, as expansion in output, new orders and employment all eased.

The SP Global Purchasing Managers39; Index PMI for Russian manufacturing fell to 52.1 in August from 53.6 in July, staying above the 50 level that marks growth in activity, but dropping to its lowest reading in 13 months.

Although output, new orders, and employment continued to grow, the rates of expansion slowed in each case, SP Global said in a statement.

Russia has been spending heavily on manufacturing military equipment and weapons since invading Ukraine in February 2022, buoying a sector that otherwise may have suffered as some countries shunned Moscow.

New export orders, which contracted in July, returned to expansion in August reportedly due to stronger demand from customers in key export markets.

Output levels rose, driven by sustained client demand, but the pace of growth was the weakest in a year, SP Global said. New orders also expanded, albeit modestly, registering the slowest growth rate since October 2022.

Employment growth eased to its slowest rate in seven months, SP Global said. Despite increased staffing, backlogs of work grew slightly due to logistics issues.

Confidence grew at a slower pace, with optimism underscored by planned investments, new products and the prospect of new customers, the survey showed.

Reporting by Alexander Marrow;…