China’s logistics industry prosperity index in September was 52.4%, and demand for logistics business has rebounded

On October 8, the China Federation of Logistics and Purchasing announced that the logistics performance index in China climbed to 52.4% in September, reflecting a 0.9 percentage point increase from August.

What does this increase in the logistics performance index indicate about current logistics demand in China?

He Hui, Chief Economist at the China Federation of Logistics and Purchasing, noted that September witnessed a steady recovery in industrial logistics demand, with a significant uptick in consumer logistics. Sectors such as electronics, pharmaceuticals, automotive manufacturing and parts, telecommunications equipment, and home appliance durable goods have all seen marked growth in logistics demand.

Could you break down the various components of the index for September?

The total business volume index for September reached 52.4%, indicating a 0.9 percentage point rise, which signifies a ramp-up in logistics activities. The overall stability of the logistics sector is reinforced by the railway and road transport sectors, which recorded business volume indices of 54.4% and 53%, respectively. This level of stability is essential for the industry’s foundation. Additionally, there is an upward momentum in air logistics demand, pointing to positive trends on the horizon.

What insights can you share regarding new orders and future market expectations?

In September, the new orders index reached 52.3%, marking a rebound of 0.5 percentage points from the previous month. The industry is exhibiting a generally optimistic outlook for future market conditions, as evidenced by the business activity expectations index climbing to 57.4%, an increase of 1.1 percentage points. Notably, both the air transportation and postal express sectors remain in strong growth territory, with indices surpassing 60%.

How does this data reflect broader logistics trends and investment priorities?

Hu Huan, Director of the Logistics Statistics Office at the China Logistics Information Center, highlighted that September’s indicators suggest balanced growth between logistics supply and demand across the economy. The supply side is gradually adjusting to new initiatives aimed at modernizing logistics hubs and large-scale equipment, with a shift in investment focus toward sustainable, low-carbon, and intelligent solutions. Overall, the scale of foundational investment and equipment utilization is showing signs of continued growth.

Looking ahead, how might government policies affect the logistics sector?

With the implementation of various policies designed to stabilize expectations, bolster confidence, increase investments, promote consumption, and enhance livelihoods, the logistics sector in China is expected to maintain its steady operational momentum going forward.