1 Dec 2016
China Logistics Prosperity Index Dec 2016
The business volume index of China Logistics Prosperity Index (LPI) came in at 59.3 in November, up slightly from 59.2 in October. Except the fixed asset investment index, all sub-indices were in the expansionary zone in November.
- Growth in new orders for logistics services accelerates
The business volume index edged up from 59.2 in October to 59.3 in November, well above the critical 50-mark. The latest index reading indicates that logistics activities have increased at a fast pace recently. Meanwhile, the new orders index improved from 56.1 in October to 56.6 in November, showing acceleration in the growth in new orders for logistics services. The employment index rose from 52.8 in October to 54.8 in November.
The employment index has been above the critical 50-mark for three consecutive months, indicating that employment in the logistics industry has increased continuously. The capacity utilization index came in at 58.5 in November, remaining above 50. Logistics enterprises have continued to see enhanced utilization of their facilities.
- Faster inventory turnover
The inventory turnover index climbed from 57.1 in October to 58.0 in November, pointing to faster inventory turnover. Meanwhile, the average inventory index went up from 57.8 in October to 58.8 in November, indicating a rise in inventory levels in warehouses in the month.
- Quicker turnover of cash
The cash flow index stayed above 50, registering 51.2 in November. The latest reading indicates quicker turnover of cash for the logistics enterprises surveyed.
- Costs on logistics enterprises increase at a very fast pace
The operating cost index went up from 57.4 in October to 61.4 in November, well above 50, indicating that costs on logistics enterprises have increased at a very fast pace. In response, logistics enterprises have raised their service charges. The logistics service charges index rose from 50.4 in October to 51.5 in November.
The operating profit index went up from 49.8 in October to 50.8 in November, indicating an increase in profits made by logistics enterprises.
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