The index for tracking logistics market performance of China has dropped to 46.3% in August 2022, which is a decrease of 2.3% percentage points from July 2022, according to the China Federation of Logistics and Purchasing.
According to the media report, 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 toward contraction while a reading above 50 signifies expansion,
The sub-index for new orders was 46.9% in August 2022, which is 3 percentage points lesser than the score in July 2022, the report added.
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%, implying that logistics companies were positive about the logistics sector’s progress in the future.