Logistics index falls to 56.6% in December

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‍China's logistics activity fell slightly in December due to seasonal factors, official data showed on Tuesday.

China Foundation Logistics and Purchasing (CFLP) released the Logistics Performance Index (LPI) of December 2017, which slid to 56.6 percent from 58.6 percent in November as the index usually dips at the end of the year. The reading was still well above the 50-percent mark that separates expansion from contraction.

Experts said it shows China’s overall market is vigorous despite the restraint momentum of logistics activities scale.

A logistics workshop in Guizhou Province, China. /VCG Photo

“The December LPI was still at a relatively high level despite the normal decline at the end of the year. Sector-wise, express delivery, rail, and road transportation remained exuberant. The logistics business of food, textile, and daily necessity was very active as holiday approaches,” said He Hui, Deputy Director of China Logistics Information Center.

The sub-indices showed that the capacity utilization and employment rates fell to 53.8 percent and 49 percent, respectively. The slight decline of both indices was due to slower construction and production activity, and declining logistics business. In the meantime, the approaching Chinese New Year also contributed to the slip in the employment index.

Meanwhile, new orders came in at 53 percent while business expectations stood at 55.8 percent. The official said that indicated logistics activity would remain stable over the next two months though influenced by the seasonal factors.