Heat, floods lead to China's modest retreat in logistics sector in Jul

06 Aug '24

1 min read

Heat, floods lead to China's modest retreat in logistics sector in Jul

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Insights

Heatwaves and floods led to a modest retreat in China's logistics sector in July, but the China Federation of Logistics and Purchasing's logistics prosperity index fell to 51 per cent, a bit lower than in June, but above the threshold.
Sub-indices for new orders, total business volume and fixed asset investment completion all pointed to growth.

Heatwaves and floods led to a modest retreat in China logistics sector in July this year, but the China Federation of Logistics and Purchasing’s logistics prosperity index stayed above the threshold, indicating sectoral health.

The July index fell to 51 per cent, a slight 0.6-percentage point (pp) lower than in June, but still within the expansion zone.

Sub-indices for new orders, total business volume, fixed asset investment completion and business activity expectations all pointed to growth, a state-controlled news outlet reported.

The total business volume index, which fell by 0.6 pp to 51 per cent, saw expansion across various sectors including air transport and warehousing.

The country’s e-commerce express industry witnessed a minor 0.7 pp pullback to 70.4 per cent, but it remains in a high prosperity range.

The road and railway transport sectors, with indices at 53.2 per cent and 51.6 per cent respectively, have been stable since the year began.

Fibre2Fashion News Desk (DS)

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