The logistics industry in China experienced a slower expansion in April, although companies remain optimistic about its future due to a projected sustained economic recovery and increased holiday consumption that are expected to boost logistics activities.
According to the China Federation of Logistics and Purchasing (CFLP), the index tracking the performance of the country’s logistics market was 53.8% in April, down 1.7% from the previous month. A reading above 50% indicates growth, while below 50% indicates contraction.
He Hui, the chief economist of the CFLP, attributed the slight decrease to seasonal fluctuations, as the logistics sector had seen a robust recovery in previous months that led to a relatively high base.
While large and medium-sized logistics firms saw stable business demand in April, small and micro companies in the sector recorded a decline in demand compared to the previous month.
The sub-index for new orders was 52.3% in April, down 1.4% month on month.
However, logistics companies are optimistic about the future of the sector, as demand is expected to increase due to the Chinese economic recovery and holiday consumption. The sub-index tracking business activity expectations of the sector remained at a high level above 55%.