6 April 2017
China Logistics Prosperity Index (April 2017)
The business volume index of China Logistics Prosperity Index (LPI) came in at 55.4 in March, up from 53.2 in February.1 Except the logistics service charges index, all sub-indices were in the expansionary zone in March.
- Acceleration in growth in logistics activities
The business volume index rose from 53.2 in February to 55.4 in March, indicating an acceleration in the growth in logistics activities. Meanwhile, the new orders index went up by 1.9 pts from the previous month to 60.0 in March, the highest since May 2015, showing that new orders for logistics services have expanded at a fast pace recently.
The employment index rose from 51.9 in February to 52.6 in March, staying in the expansionary zone for two consecutive months. The latest reading indicates that employment in the logistics industry has continued to increase. In the meantime, the capacity utilization index came in at 54.5 in March, staying above 50. Logistics enterprises have continued to see enhanced utilization of their facilities.
- Faster inventory turnover
The inventory turnover index rose sharply by 3.9 pts from the previous month 56.6 in March, above the critical 50-mark, pointing to faster inventory turnover. Meanwhile, the average inventory index also stayed above 50, registering 55.1 in March. The latest reading indicates an increase in inventory levels in warehouses in the month.
- Quicker turnover of cash
The cash flow index stayed above 50, registering 53.3 in March. The latest reading indicates quicker turnover of cash for the logistics enterprises surveyed.
- Costs on logistics enterprises increase at a faster pace
The operating cost index went up from 53.9 in February to 55.5 in March, indicating that costs on logistics enterprises have increased at a faster pace. In the meantime, the logistics service charges index rose to 49.8 in March, close to 50, showing a slight drop in charges for logistics services in the month.
The operating profit index stayed above 50, registering 54.3 in March. Profits made by logistics enterprises continued to record a month-on-month gain in March.
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