Jan-July logistics volume picks up

China issued logistics data for the first seven months. Signs are promising. Volume grew slightly faster and cost rises slowed, indicating a recovering economy and higher efficiency.

China's social logistics volume from January to July was over 109 trillion yuan, up 9.3 percent year-on-year. The growth was 0.2 percentage point higher than that in the first six months.

It was mainly because of higher logistics volume for industrial products and imported goods.

"Performance in the logistics sector is a leading indicator of the economy. So the pick up of the sector in July shows that China's economy is also recovering."said Cai Jin, deputy director of China Federation of Logistics & Purchasing

Costs are slowing down. Total social logistics costs amounted to 5.3 trillion yuan, up 8.9 percent year-on-year -- less than the 9 percent growth in the first six months.

Analysts say this is due to by investment in transportation infrastructure.

"Growing investments in urban railway and trunk railway are good for the development of logistics. It helps to separate passenger and freight transport, and provides more rail transportation for the logistics sector."said Cai.

Despite the promising signs, margin squeeze remains the main challenge to logistics players.