BEIJING, April 8 (Xinhua) -- The China Logistics Prosperity Index (LPI) rose three percentage points from a month earlier to 52.6 percent in March, returning to the expansionary territory as a result of growing demand, according to an industry report.
The sub-indexes for eastern, central and western China all stood above 50 percent, the threshold for business expansion, revealing the formation of a stable and upward growth trend across the country, said a report from China Federation of Logistics and Purchasing.
He Hui, director of China Logistics Information Center, said that the country had seen a steady growth in the demand of logistics services after the Spring Festival, especially in terms of staple commodities such as iron and steel, nonferrous metals, chemical products, building materials, mechanical equipment, household appliances, farm produce and sideline products.
The economic activities of China's major industries all became more active in March, and the logistics sector accordingly gained new momentum, He said.
The indexes of average inventory and inventory turnover rose 2.9 and 2.4 percentage points respectively, said the report.
Capacity utilization index went up 3.6 percentage points to 53.2 percent while the index of capital flow climbed by 3.1 percentage points to 53 percent.
With the new orders index surging by 2.2 percentage points to 54.5 percent in March and business expectations index rallying for two consecutive months, the report said the country's logistics sector was on a sound track of business recovery.
He Hui suggested logistics companies making more efforts to pare down costs as operation costs remain an important factor that restricts industrial development.
Initiated in March 2013, the LPI has been used as a fore-indicator of China's economic and business conditions.
