China’s logistics business expands at slower pace in August

China's logistics business continued to expand in August, but the expansion rate was lower than the previous month, according to a recent survey.

The logistics performance index for August came in at 50.9 per cent, 0.2 percentage points lower than in July, according to the China Federation of Logistics and Purchasing.

A reading above 50 per cent indicates expansion while a reading below reflects contraction.

Despite a cyclical decline of the index, it still remains in the expansionary territory, said He Hui, director of the China Logistics Information Center.

The new orders index rebounded in August, as market demand picked up.

The index of new orders was 50.7 per cent in August, up 0.2 percentage points from July, indicating the peak season for traditional production and construction is approaching and the logistics demand of upstream and downstream enterprises in the supply chain has increased.

The average inventory index was 50.3 per cent in August, up 1.2 percentage points from July, reflecting increased logistics-related storage business.

Looking into the future, the indexes of new orders and business activity expectations are at 50.7 per cent and 58.8 per cent, respectively, indicating the logistics business will continue to be stable in the near future, according to the federation.