In April 2023, the expansion of China’s logistics industry experienced a slowdown, despite companies remaining positive about the future of the sector. The index tracking the country’s logistics market performance dropped by 1.7 percentage points from March, standing at 53.8 per cent in April. A reading above 50 signifies growth, while a reading below 50 indicates contraction.

The expectation for increased logistics activities is driven by the sustained economic recovery and an anticipated surge in holiday consumption, according to data from the China Federation of Logistics and Purchasing (CFLP).

The sub-index for new orders in April decreased by 1.4 percentage points month-on-month (MoM), registering at 52.3 per cent. Despite this, logistics companies remain optimistic about the sector’s outlook, as the sub-index tracking business activity expectations stood at a high level above 55 per cent. Demand, bolstered by China’s economic recovery and holiday consumption, is predicted to gradually increase in the coming months.

CFLP’s chief economist He Hui attributed the minor decline of the index to seasonal fluctuations, as a strong rebound in the logistics sector in previous months led to a relatively high base, as per local media reports.

He noted that large and medium-sized logistics firms experienced stable business demand in April, while small and micro companies in the sector observed a decrease in demand compared to the previous month.

Fibre2Fashion News Desk (NB)

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China's logistics expansion slows in Apr 2023, outlook positive

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