FX.co ★ South Africa Factory Activity Returns to Growth: Absa

South Africa’s seasonally adjusted Absa Purchasing Managers’ Index (PMI) rose to 50.7 in September 2026 from 45.8 in August, moving back into expansionary territory for the first time since May. New sales orders increased sharply to 50.8 from 40.3, and the business activity index rebounded to 49.3 after plunging to 40.2 in the previous month.

Despite the improvement, overall business activity remained just below the neutral 50 threshold, while employment conditions deteriorated and order backlogs stayed weak. Logistics disruptions persisted due to shipping delays at the Port of Durban, and input cost pressures remained elevated.

Looking ahead, manufacturers were cautiously optimistic. The index measuring expected business conditions over the next six months edged up to 55.3 from 54.7, indicating improving confidence in the medium-term outlook.