The dip in logistics activities in the country can be attributed to hot, rainy weather as well as COVID-19 outbreaks in some places. An index reading below 50 points towards contraction while a reading above 50 signifies expansion, according to the China Federation of Logistics and Purchasing.

China’s index for tracking logistics market performance has dropped to 46.3 per cent in August 2022, a decrease of 2.3 percentage points from July 2022. The dip in activity can be attributed to hot, rainy weather and COVID-19 outbreaks in some places. An index reading below 50 points towards contraction and a reading above 50 signifies expansion.

The sub-index for new orders was 46.9 per cent in August 2022, which is 3 percentage points lesser from the score in July 2022. The decline reflects the lack of momentum in the recovery of China’s production and consumption demand, as per various Chinese media reports.

Moreover, the sub-index for business activity expectations stood at 54.2 per cent, implying that logistics companies were positive about the logistics sector’s progress in the future.

Fibre2Fashion News Desk (NB)