China's Warehousing Index edged up in October but still remained in contraction for a third consecutive month, according to data released by the China Federation of Logistics and Purchasing on Wednesday.
China's warehousing index rose to 49.8 percent in October, up 0.1 percentage points from September.
In terms of business activity, overall market demand in the manufacturing sector eased in October, while construction activity progressed slowly, weighing on warehousing demand for bulk commodities.
The service sector remained relatively stable, buoyed by holiday spending, but provided only limited support to consumer-goods warehousing.
Inventories continued to decline. With demand recovering slower than expected, companies focused on drawing down existing stocks, and the destocking cycle has yet to run its course.
New orders were still in expansion, pointing to an anticipated recovery in demand in the period ahead.
"Since November, policies to stabilize the economy have continued to take effect, while funds such as special bonds are being put to work more quickly on concrete projects. E-commerce promotions and the year-end peak shopping are expected to bring a seasonal rebound in demand for consumer goods, with demand for warehousing services expected to see gradual improvement. Overall, the warehousing sector is well positioned to stabilize and begin recovering in the months ahead," said Liu Yuhang, director of the China Logistics Information Center.
China's warehouse storage sector shows slight rebound in Oct
