China's warehouse sector saw a mild contraction in August, as seasonal factors and adverse weather conditions dampened demand, according to the data released Friday by the China Federation of Logistics and Purchasing (CFLP).
The country's warehouse storage index dropped to 49.3 percent, down 0.8 percentage points from July, falling below the 50-percent threshold that separates expansion from contraction.
The new order index declined from previous months, particularly in steel storage, which saw a notable month-on-month drop due to the demand lull. And the new order index for food storage remained below 50 percent for the second consecutive month.
Meanwhile, the weather-related disruptions and weak demand affected warehouse operations, slowing turnover rates. The inventory remained stable, laying a foundation for the recovery of market demand in the future. Non-ferrous metal inventories rose sharply.
Despite the slowdown, businesses remain optimistic about a rebound in the coming months.
The business activity expectation index rose to 54.8 percent, up 2.5 percentage points from July, signaling growing confidence among enterprises.
Industry analysts expect a recovery in September, as weather conditions normalize and consumer demand picks up ahead of the Mid-Autumn Festival and National Day holidays. Outdoor construction is also expected to resume, further boosting warehouse activity.
China's August warehouse storage index falls amid seasonal lull
