JOHANNESBURG, Oct 1 (Reuters) – South African manufacturing activity increased in September, recovering from the previous month’s slump as demand rose and an interest rate cut boosted sentiment, the Absa-sponsored purchasing managers’ index survey showed on Tuesday.

Absa’s seasonally adjusted PMI for the factory sector rose to 52.8 points in September from 43.6 in August, above the 50-point mark that shows growth.

“Both domestic and export demand showed signs of improvement… On the local consumer front, the recent interest rate cut adds to the expectation of a possible more positive demand story going forward,” local bank Absa, which sponsors the survey, said in a statement.

“The positive PMI results suggest that the manufacturing sector is stabilising after a turbulent period, although challenges remain, particularly in employment,” Absa said in a statement.

The 9.2-point jump in the index in September more than made up for the 8.8-point drop in August.

(Reporting by Tannur Anders; Editing by Bhargav Acharya and Hugh Lawson)