MOSCOW (Reuters – Russian manufacturing activity grew marginally in November, as new orders increased but costs pressures strengthened. This was according to a Wednesday survey.

The October IHS Markit PMI rose to 51.7, from 51.6 in October. It remained above the threshold of 50.0 that distinguishes expansion and contraction.

As client demand grew, output growth and new orders increased at the fastest rate since May.

Sian Jones, an economist from survey compiler IHS Markit, stated that “although the upturns had historically been subdued but they were the fastest for 6 months.”

In November, employment increased by 2%. The increase was due to higher production demands.

Increasing supplier costs and shortages of raw materials caused significant increases in input costs. According to firms, they partially passed these costs on to their clients.

Producers were optimistic for a rise in orders. This was reflected in their five-month high level.

Jones stated that “upbeat expectations” were despite the recent rise in COVID-19 case numbers, which may threaten sector recovery speed.