(Reuters) -Activity across Russia’s manufacturing sector declined for the third month running in August, a business survey showed on Monday, driven by falls in output and new orders for both domestic and export markets.

The S&P Global Purchasing Managers’ Index (PMI) for Russia’s manufacturing sector rose to 48.7 last month from 47.0 in July, but remained below the 50 mark separating contraction from expansion.

Manufacturers cited weak demand and financial difficulties among clients as key factors for the continued contraction in output and new orders, the survey showed.

Russia’s significant spending on military equipment and weapons since invading Ukraine in February 2022 has buoyed a manufacturing sector that otherwise may have suffered as some countries shunned Moscow.

But this year

See Full Page