(Reuters) – Russian manufacturing activity fell in February, with new orders falling for the first six months. This was due to the COVID-19 pandemic affecting businesses. A survey on Tuesday showed that this trend continued.

The February Markit PMI fell below 51.8 from the prior month and to 48.6.

Sian Jones (a senior economist at IHS Markit who compiles this survey) stated that “weak market demand conditions combined with the continuing impact of the pandemic caused the first drops in output and new order since August 2021.”

The monthly survey revealed that new export orders fell at their fastest pace for four months. Inflationary pressures increased as suppliers costs rose and logistic issues continued to hinder supplier deliveries.

The survey also found that Russian producers saw the largest decline in job opportunities since August 2021. However, the survey did not include the Russian attack on Ukraine which took place February 24th and resulted in harsh economic sanctions for Moscow and its central bank.

The outlook for the next year’s output was positive, however. Jones noted that the current subdued market and headwinds did not depress optimism. Jones claimed that it had reached its peak since August 2019.

Russia refers to its actions in Ukraine as a “special operations” and says it isn’t meant to occupy any territory. Its purpose is to degrade the military capabilities of its southern neighbor, capture dangerous nationalists, and destroy their military capability.