SHANGHAI: China’s logistics sector expanded steadily in September, in a signal that domestic demand is picking up and the momentum of China’s economic recovery is further strengthening, analysts say.
The logistics performance index came in at 52.4 percent last month, 0.9 percentage points higher than in August, data from the China Federation of Logistics and Purchasing showed on Tuesday.
The index tracks business volumes, new orders, employment, inventory turnover and equipment utility rates in the sector.
A reading above 50 indicates expansion, while one below reflects contraction.
Sectors such as electronic components, pharmaceutical and chemical products, automotive manufacturing and parts, telecommunication equipment and consumer durables like home appliances all experienced stable growth, industry analysts said.
An orderly recovery in industrial logistics demand, coupled with faster growth in consumer-related logistics, indicates that the economic recovery is gaining traction on multiple fronts, said He Hui, the federation’s chief economist.
The implementation of a series of policies aimed at expanding investment, promoting consumption, and enhancing people’s livelihoods is expected to further support the stable operations of the logistics industry in the coming period, He added.
Specifically, the business volume index for the rail transport industry rose to 54.4% in September, up 0.5 percentage points from the previous month.
The road transport industry’s business volume index also increased by 0.6 percentage points to 53%.
The aviation logistics sector also maintained its growth momentum, with the overall business volume index and new orders index reaching 57.8% and 59.5%, respectively, in September.
That was up 0.8 and 1.1 percentage points from the previous month.
China’s courier industry, in particular, saw a significant uptick in business activity in September, with the sector’s overall business volume index reaching 69.9%, well above the industry average. — China Daily/ANN
