Activity in Russia's manufacturing sector expanded in February at the fastest pace in seven years as robust domestic demand offset declining new export orders, a survey showed on Friday.

The S&P Global Purchasing Managers' Index (PMI) for Russian manufacturing rose to 54.7 in February from 52.4 in January, moving further above the 50 marks that separates expansion from contraction.

The pace of expansion had not been that fast since January 2017.

Surveyed firms said that greater output was linked to stronger demand and the sharpest rise in new orders since March 2011.

But producers also noted raw material shortages and delivery delays during February, S&P Global said.

"Delivery times worsened solidly, as logistics issues led to extended delays. Difficulties sourcing some items led to challenges replenishing stocks of purchases and saw finished goods used to supplement production."

The sector's revival since the early months of Russia's invasion of Ukraine has depended on domestic demand as some markets have shunned Russia. Moscow is spending particularly heavily on manufacturing, pouring cash into the defence sector to ramp up military production during its war in Ukraine.

Firms were optimistic about future output, the survey showed.

"Alongside hopes of stronger client demand, firms noted that greater confidence was due to new product development, planned investment in new machinery and the expansion of operations in new export markets," S&P Global said. (Reporting by Alexander Marrow; Editing by Susan Fenton)