China's warehouse storage sector experienced a significant rebound and returned to the expansion zone in November, according to data released by the China Federation of Logistics and Purchasing on Tuesday.
The index tracking the sector's development stood at 52.4 percent in November, up 3 percentage points from October, the data showed. The demand for warehousing services rebounded as e-commerce marketing activities drove the sector, leading to thriving business operations.
A reading above 50 percent indicates expansion, while a reading below 50 percent reflects contraction.
The new order index for November stood at 54 percent, an increase of 6.2 percentage points from the previous month. Particularly noteworthy was the robust uptick in new orders in the steel, chemical products, machinery and equipment, and mineral products sectors, with the new orders index in these sectors exceeding the 50 percent expansion threshold.
Furthermore, enterprises in the sector saw a positive inventory turnover. In November, the average turnover index rose to 56.3 percent, a 4-percentage-point increase from the previous month. This indicated a positive turnover of commodities and an overall improvement in business operations compared to the preceding period.
Additionally, the index for business activity expectation registered at 54.5 percent, a 0.5 percentage-point increase compared to last month, reflecting enhanced confidence among enterprises in this sector.
Analysts held that the gradually implemented policies are expected to further bolster demand growth in the warehousing industry.
China's warehousing service sees significant rebound in November
