Russia’s manufacturing industry was stable in June, with a rebound in domestic demand softening the blow from a continued slump in exports, according to a survey on Friday, Reuters wrote.

The business activity index (PMI) from S&P Global (NYSE:SPGI)rose to 50.9 from 50.8 in May, surpassing the 50.0 mark that separates growth from contraction, and continues to recover after falling below 50 between February and April.

For now, however, Russian industry remains under severe pressure from Western sanctions.

According to S&P Global, while actual output fell in June, an increase in new orders from domestic companies and a rise in hiring over the same time helped offset a fifth consecutive month of falling exports.

Companies reported severe supply chain problems and difficulties in sourcing raw materials as sanctions hit the logistics sector.

Renaissance Capital estimates that about a third of Russian exports have been hit by Western sanctions, while the strengthening ruble has also affected demand for Russian products abroad.

Today, the ruble is trading at multi-year highs near 52 per $1, helped by the Central Bank’s capital controls and import cuts that have limited demand for foreign currency inside Russia.

But companies surveyed remain optimistic about a recovery in customer demand, and business confidence rose for the third straight month to its strongest level since February.