China’s logistics sector suffered a slight decline in July due to the impact of heatwaves and floods, but the logistics prosperity index, as reported by the China Federation of Logistics and Purchasing, remains above the threshold demarcating the sector’s health.
The index for July fell to 51%, down 0.6 percentage points from June, but remains in the expansion zone. This suggests that despite the adverse weather conditions, the multi-billion dollar logistics market continues to perform well.
The sub-indices for total business volume, new orders, completion of fixed asset investments and business activity expectations all indicated growth, reinforcing the overall positive trend.
The total business volume index, which fell by 0.6 percentage points to 51%, saw expansion in various sectors, including rail, road and air transport, warehousing and postal services.
The air transport sector in particular increased by 1.2 percentage points to reach 56.3%, thanks to the boost provided by the summer travel season.
The express e-commerce industry, which has been booming thanks to the strength of online shopping, saw a slight decline of 0.7 percentage points to 70.4%, but it remains in a high prosperity range.
The road and rail transport sectors, with respective indices of 53.2% and 51.6%, have maintained stable performance since the beginning of the year, providing a solid foundation for the continued stability of the industry.
