The index, which gauges manufacturing activity in Africa's most industrialised economy, rose to 58.3 points in September from 57.3 points in August, well above the 50-point mark that separates expansion from contraction.

"Although the headline PMI also improved on a quarter-on-quarter basis, the increase in the business activity component is more pronounced and probably better reflects the pure output dynamics at this stage," Absa said in a statement.

South Africa imposed a strict coronavirus lockdown at the end of March, squeezing businesses and consumers, and economic output recorded its largest contraction ever in the second quarter.

(Reporting by Mfuneko Toyana, Editing by Olivia Kumwenda-Mtambo)