China's logistics sector keeps recovering in April

BEIJING - China's logistics sector expanded its recovery in April as reopening of businesses gained more steam amid further containment of COVID-19, according to industry data released Wednesday.

The logistics performance index, compiled by the China Federation of Logistics and Purchasing (CFLP), was up 2.1 percentage points month-on-month to 53.6 percent in April.

The composite index tracks business volume, new orders, employment, inventory turnover and equipment utility rate in China's logistics sector. A reading above 50 percent indicates expansion, while a reading below reflects contraction.

CFLP director He Hui attributed the sustained index growth in April to the strong driving force of pent-up market demand as China's resumption of work and production is expedited thanks to effective containment of the virus.

The growth in April came after March saw a 25.3-percentage-point rise in performance index to 51.5 percent amid a positive trend in epidemic control and prevention and a slew of policies to fast-track work resumption.

The sub-indices for inventory turnover, new orders and equipment utility rate all logged growth over the previous month, with new orders reading rising 4.8 percentage points to reach 54 percent, the data showed.

Business volume climbed 2.1 percentage points month-on-month to reach 53.6 percent in April, as the country pushes forward full resumption of work and production capacity.

The federation expects the sector to maintain its steady growth and speed up returning to normal operations, noting that firms are optimistic about future development.