China's warehouse storage sector rebounds in May

BEIJING -- China's warehouse storage sector expanded in May, according to a survey jointly released by the China Federation of Logistics and Purchasing and CMST Development Co, Ltd.

The index tracking the sector's development rose 3.7 percentage points from April to 50.2 percent, putting it back in the expansion range, the survey showed.

A reading above 50 percent indicates expansion, while one below 50 percent reflects contraction.

The sector rebounded in May amid faster implementation of pro-growth policies and production resumption in virus-hit areas, said Wang Yong of CMST Development, adding that the weaker recovery of demand compared to that of supply has led to some products being stockpiled.

The sub-index for business volume stood at 53 percent, up 10.4 percentage points from a month earlier, indicating warming demand as COVID-19 impact tapers off, according to the survey.

It predicted stable growth for the sector in the near future, given that the sub-readings for new orders and for enterprises' expectations of business activities both stood in the expansion zone.