1 Jan 2017
China Logistics Prosperity Index Jan 2017
The business volume index of China Logistics Prosperity Index (LPI) came in at 56.0 in December, down from 59.3 in November. Except the logistics service charges index, all sub-indices were in the expansionary zone in December.
- Logistics activities increase at a slower pace
The business volume index fell from 59.3 in November to 56.0 in December, indicating that logistics activities have increased at a slower pace recently. Meanwhile, the new orders index dropped from 56.6 in November to 56.1 in December, showing deceleration in the growth in new orders for logistics services.
The employment index fell from 54.8 in November to 51.1 in December, indicating that employment in the logistics industry has increased at a slower pace recently. The capacity utilization index came in at 55.6 in December, remaining above 50. Logistics enterprises have continued to see enhanced utilization of their facilities.
- Higher inventory levels
The inventory turnover index was 55.9 in December, above the critical 50-mark, pointing to faster inventory turnover. Meanwhile, the average inventory index registered 56.2 in December, above 50, indicating higher inventory levels in warehouses in the month.
- Quicker turnover of cash
The cash flow index stayed above 50, registering 54.7 in December. The latest reading indicates quicker turnover of cash for the logistics enterprises surveyed.
- Logistics enterprises reduce their service charges
The operating cost index was 59.7 in December, well above 50, indicating that costs on logistics enterprises have increased at a very fast pace. However, the logistics service charges index dropped from 51.5 in November to 49.3 in December, showing that logistics enterprises have reduced their service charges.
The operating profit index went up from 50.8 in November to 54.1 in December, indicating an acceleration in the growth in profits made by logistics enterprises.
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