China’s logistics industry experienced stable growth in September, according to the China Federation of Logistics and Purchasing. The China Logistics Industry Prosperity Index for September was released on October 8, revealing that logistics activity increased during the month and the industry’s growth momentum remained stable.
The index for September reached 53.5%, a 3.2 percentage point increase from the previous month. This growth can be attributed to the continuous release of consumption potential, driven by a series of implemented policies. Logistics demand in various sectors including communication equipment, transportation equipment, electrical machinery and equipment, automobile manufacturing and parts, and the pharmaceutical and chemical industry rebounded steadily. Industrial logistics demand also recovered, while people’s livelihood consumer logistics experienced rapid growth.
Liu Yuhang, Director of China Logistics Information Center, commented on the recovery, stating that the logistics industry has entered a “Golden Nine” operating status. He emphasized that the overall improvement in the logistics industry prosperity index reflects the increasing activity and improvement in both the supply and demand sides of the market.
The regional analysis showed an increase in logistics activity in the eastern region, with a total business volume index of 53.8%, a 2.2 percentage point increase from the previous month. While the total business volume index in the central and western regions was lower than the national average, both regions still experienced month-on-month increases of 3.8 and 0.8 percentage points respectively.
Zuo Min, a professor at Beijing Technology and Business University, commented on the improvement in the logistics industry prosperity index, stating that it reflects an overall improvement in the economy and increased activity in the upstream and downstream supply chains.
Driven by stable and improving demand, the logistics industry also experienced an increase in investment and a simultaneous improvement in corporate efficiency and operational efficiency. Except for water transportation, all industries were in the expansion range in September. The railway transportation industry and road transportation industry had indices of 52.1% and 55.6% respectively. The postal express industry stood out with a total business volume index exceeding 65%.
The fixed asset investment completion index increased by 1.9 percentage points month-on-month in September. The warehousing industry, water transportation industry, postal express industry, and air transportation industry were identified as key areas of investment.
The enterprise’s main business profit rate index also rebounded in September, increasing by 2.7 percentage points month-on-month. The profit levels of large, medium, small, and micro enterprises simultaneously improved, with small and micro enterprises experiencing a continued rise.
The new order index in September increased significantly by 3.8 percentage points from the previous month, indicating improved market demand. Different regions showed varying increases, with the central region reaching a year-high of 54.1%. Additionally, the business activity expectation index in September was 58.8%, the highest point of the year, reflecting a positive outlook for the industry.
Experts concluded that the logistics industry’s boom has demonstrated a recovery and marginal improvement since September. The effectiveness of early policy releases and the enhancement of endogenous economic power, along with seasonal factors, have contributed to this growth. With the successful conclusion of the “National Day” Golden Week and various positive factors such as accelerated production and holiday consumption expectations, the industry has a stable foundation for future growth in the fourth quarter.