China's logistics activity slows in July

BEIJING - China's logistics activity posted a slower expansion in July as seasonal factors such as severe downpours and typhoons wreaked havoc in the country's central and eastern regions, data from the China Federation of Logistics and Purchasing showed.

The logistics performance index, which tracks business volumes, new orders, employment, inventory turnovers and equipment utility rates in the sector, came in at 50.3 percent last month, down 4.3 percentage points from June.

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

Despite decreases from a month earlier, sub-indexes of the logistics sector remained in the expansion zone, indicating a cyclical pullback in logistics business activity with the overall growth continuing to be steady, the CFLP noted.

Specifically, the growth of logistics demand slowed in July as the sub-index for new orders came in at 50.4 percent, down 2.5 percentage points from June.

The sub-indexes for equipment utility rates and completed investment in fixed assets stood at 50.5 percent and 51.1 percent, down 1.5 percentage points and 0.3 percentage points, respectively.

The sub-index for business activity expectations came in at 58.1 percent, reflecting companies' confidence in the sector's outlook.