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China's logistics sector continues recovery in May

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Reference:CGTN | Updated: 2 June 2020

China's logistics sector continued to recover in May with the smooth resumption of businesses and positive results in containment of the coronavirus pandemic, industry data showed Tuesday.

The logistics performance index, compiled by the China Federation of Logistics and Purchasing (CFLP), registered 54.8 percent, up by 0.1 percentage points month on month in May.

The recovery can be attributed to the active operation of the upper and lower streams of the supply chains and gradually positive market demand, according to He Hui, CFLP Director.

The capital turnover rate index rebounded, which showed that the company's capital shortage has improved. At the same time, the logistics service price and the enterprise efficiency index stabilized at a low level, reflecting that logistics companies are gradually operating in a positive trajectory, said He.

The new orders index also rebounded, and demand rose steadily. In May, the new orders index was 54.2 percent, up by 0.2 percentage points from the previous month, laying a foundation for the logistics industry to maintain a rebound trend in the future.

In addition, the fixed asset investment completion index was 52.8 percent, up by 1.7 percentage points from the previous month. As enterprises resume work and production steadily, production capacity gradually recovered, and enterprises are accelerating transformation and upgrading.

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