Absa PMI climbs above 50 for the first time since May, but employment slips
The Absa Purchasing Managers' Index, compiled by the Bureau for Economic Research, rose to 50.7 in September from 45.8 in August (BusinessDay, Engineering News, Trading Economics). New sales orders jumped to 50.8 from 40.3 and business activity rose to 49.3 from 40.2. Employment weakened and backlogs stayed low. Delays at Durban port seem to have lifted the supplier-deliveries component. The six-month outlook edged up to 55.3.
It ended three months of contraction in factory activity, a sector that employs many people and feeds exports.
One good month does not make a recovery, but it hints at fewer layoffs if orders hold.
New orders rebounded sharply, which suggests demand is returning.
Employment fell, and part of the headline lift came from delivery delays, which is not a sign of strength.
Absa itself wants a sustained move above 50. Look at October before calling it a turn.
DailyDrop South Africa edition No. 1 · Morning · MON., OCT. 5, 2026