CHINA Federation of Logistics and Purchasing's (CFLP) latest statistics showed that China's Logistics Prosperity Index (LPI) in May was at 53.2 per cent, still above the critical level of 50 points, but down 1.6 from April.
The index also showed that demand in eastern China was rising, but was shrinking in the west.
All sub-indexes remained above 50 per cent except the average inventory index and the logistics service price index.
The new order index was at 53.1 per cent, indicating that demand for logistics service is still thriving. The business volume index was at 55.8 per cent, showing that logistics operations were still active in both the higher and lower end of the supply chain.
But the average inventory index fell to 49.3 per cent, showing slower growth in production and consumption. Logistics industry employee index also dropped to 50.2 per cent, indicating that the number of personnel engaged in the industry is still increasing but at a lower rate.
China Logistics Information Centre deputy director He Hui said the May LPI showed a steady upward trend that it has maintained since March. Business expectation index continued to stay above 60 per cent, showing that logistics operators were still confident about their business in the next three months.
Judging from different regions, indices for eastern China increased slightly, while those for the west declined. This marked that economic growth in the east was becoming steady and was starting to pick up speed, but demand in the west remained weak.
In the eastern region, new order index recorded a fractional growth of 0.7 percentage points to 56.9 per cent, while business volume index increased 1.2 percentage points to 61.2 per cent. But in the west, both indexes dropped substantially. The business volume index fell below 50 per cent.
MARKETS
16 June 2013 - 21:29
China's Logistics Prosperity Index slips 1.6 to 53.2 points in May
CHINA Federation of Logistics and Purchasing's (CFLP) latest statistics showed that China's Logistics Prosperity Index (LPI) in May was at 53.2 per cent,
MARKETS
16 June 2013 - 21:29
China's Logistics Prosperity Index slips 1.6 to 53.2 points in May
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