China’s logistic industry activities slipped back into contraction in July
DATA MACRO
China’s logistic industry activities slipped back into contraction in July
DATA MACRO

China’s logistic industry activities slipped back into contraction in July

 

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China’s Logistics Prosperity Index (LPI) fell to 48.6% in July, falling by 3.5 percentage points from the previous month, according to the China Federation of Logistics and Purchasing (CFLP).

The decline was attributable to high-temperature and rainy weather and Covid-19 flare-ups in some regions, it said.

The sub-index for the logistics industry’s business volume declined by 3.5 percentage points last month to 48.6% and the sub-index for new orders fell by 3.4 percentage points to 49.9%, both slipping into contraction, showed the data, indicating market demand has yet recovered.

The sub-index for fixed-asset investment in the logistics industry increased by 1.1 percentage points to 51%, rising for the third consecutive month to climb into expansionary territory, with investment in railway, road, ports and postal express delivery growing rapidly, showed the data.

Logistics companies’ profitability weakened further in July as slowing demand and rising cost further squeezed profits in the recent month, according to the CFLP.

Profits from logistics companies’ main business declined again after a brief pick up in June, with the sub-index falling by 1.8 percentage points from the previous month, it said.

By regions, logistics activities in China’s eastern regions were largely stable in the expansionary territory, while that in central and western China slipped into contraction, with western regions showing steeper declines due to the impact of the Covid-19 flare ups, said the CFLP.