Logistics Industry in China Shows Slight Dip in Prosperity Index in October 2023
According to data released by the China Federation of Logistics and Purchasing, China’s logistics industry prosperity index for October 2023 was 52.9%, representing a 0.6 percentage point decline from the previous month. Despite this dip, the total business volume index remained within the expansion range.
Breaking down the data by industry, railway transportation, air transportation, warehousing logistics, postal express delivery, and other businesses all reported prosperous total business volume indices. The road transportation industry consistently maintained an index value above 52% for several consecutive months, primarily driven by increased demand for bulk material transportation. The railway transportation industry saw a boost with a month-on-month increase of 0.5 percentage points, reaching a total business volume index of 52.6%. Air logistics and e-commerce express logistics also experienced positive momentum due to the growth of fresh product and online shopping. The air transportation industry’s total business volume index stood at 53.9%, while the postal express industry boasted an impressive 65.2%, both indicating high levels of prosperity.
Moreover, both the new orders index and the expectations index remained in the expansionary territory. The new orders index for October was 52.8%, a slight decrease of 0.5 percentage points compared to the previous month. However, the new order index for the railway transportation industry, road transportation industry, air transportation industry, and postal express delivery industry all exceeded the industry average. Notably, the road transportation industry’s new order index witnessed a month-on-month increase of 0.9 percentage points, reaching 53%. Business activity expectations in most logistics fields were above 55%.
The main business profit rate index for enterprises in October remained unchanged from the previous month, although small enterprises and micro enterprises experienced slight rises of 0.3 and 0.5 percentage points, respectively. The road transportation and postal express industries saw increases of 2 and 0.7 percentage points, respectively, with the main business profit rate indices of the air transportation, pipeline transportation, warehousing, multimodal transport, and other industries remaining within the expansion range.
He Hui, chief economist of the China Federation of Logistics and Purchasing, stated that although the logistics industry prosperity index slightly declined in October, logistics activities are still maintaining an expansion trend. The three major regions in China demonstrate balanced growth, and logistics activities in each region remain robust. Looking ahead, the macro economy is expected to remain resilient, with steady release of endogenous driving forces for economic growth, providing a stable foundation for logistics operations.
Hu Hao, director of the Logistics Statistics Division of the China Logistics Information Center, attributed the industry’s performance to two factors: the continued driving force of resident consumption and the implementation of policies aimed at stabilizing investment and expectations, thus promoting the gradual recovery of demand throughout the supply chain.
The original article was sourced from the Economic Information Daily.
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