1 Nov 2016
China Logistics Prosperity Index Nov 2016
The business volume index of China Logistics Prosperity Index (LPI) came in at 59.2 in October, up from 59.0 in September. Except the operating profit index, all sub-indices were in the expansionary zone in October.
- Growth in logistics activities quickens
The business volume index went up from 59.0 in September to 59.2 in October. The rise in the index indicates that growth in logistics activities has further quickened. Meanwhile, the new orders index fell from 56.8 in September to 56.1 in October. The October reading was still the second highest in 17 months, indicating that new orders for logistics services have expanded at a relatively fast pace recently.
The employment index rose from 51.6 in September to 52.8 in October. The employment index has been above the critical 50-mark for two consecutive months, indicating an increase in employment in the logistics industry. The capacity utilization index came in at 58.3 in October, staying above 50 for the eighth consecutive month. Logistics enterprises have continued to see enhanced utilization of their facilities.
- Higher inventory levels in warehouses
The inventory turnover index fell from 58.5 in September to 57.1 in October. The October reading was still well above the critical 50-mark, pointing to faster inventory turnover. Meanwhile, the average inventory index rose markedly from 54.8 in September to 57.8 in October, indicating a rise in inventory levels in warehouses in the month.
- Quicker turnover of cash
The cash flow index stayed above 50, registering 52.4 in October. The October reading indicates quicker turnover of cash for the logistics enterprises surveyed.
- Logistics enterprises increase their service charges
The operating cost index remained high at 57.4 in October, indicating that costs on logistics enterprises have increased at a fast pace. Meanwhile, the logistics service charges index rose from 50.0 in September to 50.4 in October. Logistics enterprises have increased their service charges correspondingly.
The operating profit index went down from 50.8 in September to 49.8 in October, below the critical 50-mark, indicating a slight drop in profits made by logistics enterprises.
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