Cargo is offloaded from containers at a logistics facility in Rongcheng, Shandong province, in September. [LI XINJUN/FOR CHINA DAILY]
China's logistics sector expanded steadily in September, in a signal that domestic demand is picking up and the momentum of China's economic recovery is further strengthening, analysts said.
The logistics performance index came in at 52.4 percent last month, 0.9 percentage points higher than in August, data from the China Federation of Logistics and Purchasing showed on Tuesday.
The index tracks business volumes, new orders, employment, inventory turnover, and equipment utility rates in the sector. A reading above 50 indicates expansion, while one below reflects contraction.
Sectors such as electronic components, pharmaceutical and chemical products, automotive manufacturing and parts, telecommunication equipment, and consumer durables like home appliances all experienced stable growth in their logistics needs, industry analysts said.
An orderly recovery in industrial logistics demand, coupled with faster growth in consumer-related logistics, indicates that the economic recovery is gaining traction on multiple fronts, said He Hui, the federation's chief economist.
The implementation of a series of policies aimed at expanding investment, promoting consumption, and enhancing people's livelihoods is expected to further support the stable operations of the logistics industry in the coming period, He added.
Specifically, the business volume index for the rail transport industry rose to 54.4 percent in September, up 0.5 percentage points from the previous month. The road transport industry's business volume index also increased by 0.6 percentage points to 53 percent.
The aviation logistics sector also maintained its growth momentum, with the overall business volume index and new orders index reaching 57.8 percent and 59.5 percent, respectively, in September, up 0.8 and 1.1 percentage points from the previous month.
China's courier industry, in particular, saw a significant uptick in business activity in September, with the sector's overall business volume index reaching 69.9 percent — well above the industry average.
The recovery in the logistics industry index represents more than just a single data point — it is a tangible indication that various aspects of the economy are gaining momentum, said Xu Hongcai, deputy director of the China Association of Policy Science's Economic Policy Committee.
The improved logistics performance is a result of the strengthening interplay between supply and demand, the growing optimism among businesses about the country's economic outlook and the increasing vibrancy of production and consumption, Xu said.
Data from the National Bureau of Statistics showed that China's official purchasing managers index for the manufacturing sector — a main gauge of factory activity — came in at 49.8 in September, up from 49.1 in August.
Though still below the 50-point mark that separates contraction from expansion, the figure marked the highest notch in the past five months and ended a two-month decline.
Meanwhile, according to a report by Zheshang Securities, China's total retail sales of consumer goods are expected to grow by 2.9 percent year-on-year in September, accelerating from the previous month's 2.1 percent increase, signaling a strengthening of consumer demand in the world's second-largest economy.
As the effects of China's fiscal, monetary, real estate, and consumption-boosting policies continue to unfold, the recovery momentum of the Chinese economy is poised to strengthen further in the fourth quarter and achieve its full-year growth target, Xu said.
