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China Logistics Prosperity Index Oct 2016

The business volume index of China Logistics Prosperity Index (LPI) came in at 59.0 in September, up from 54.3 in August. 11 of the 12 sub-indices were in the expansionary zone in September.

  1. Growth in logistics activities reaccelerates

    The business volume index rebounded markedly from 54.3 in August to 59.0 in September. The rise in the index indicates a reacceleration in growth in logistics activities. Meanwhile, the new orders index went up from 53.6 in August to a three-month high of 56.8 in September, indicating that growth of new orders for logistics services has quickened.

    The employment index rose from 49.8 in August to 51.6 in September. For the first time in four months, the employment index was above the critical 50-mark, indicating an increase in employment in the logistics industry in September. The capacity utilization index came in at 57.2 in September, staying above 50 for seven consecutive months. Logistics enterprises have continued to see enhanced utilization of their facilities.

  2. Faster inventory turnover

    The inventory turnover index rose sharply from 54.4 in August to 58.5 in September, pointing to faster inventory turnover. Meanwhile, the average inventory index dropped slightly from 55.0 in August to 54.8 in September, but was still above the critical 50-mark. Thus, the September reading indicates a rise in inventory levels in warehouses in the month.

  3. Quicker turnover of cash

    The cash flow index rose above 50, registering 52.8 in September. The September reading indicates quicker turnover of cash for the logistics enterprises surveyed.

  4. Costs on logistics enterprises increase at a faster pace

    The operating cost index rose from 52.9 in August to 57.8 in September, indicating that costs on logistics enterprises have increased at a faster pace. Meanwhile, the logistics service charges index came in at 50.0 in September, indicating that logistics service charges have stayed unchanged recently.

    The operating profit index went up from 48.7 in August to 50.8 in September. The index rose above 50 in September, indicating a rise in profits made by logistics enterprises.

  5. Logistics enterprises are quite optimistic about business outlook

    The fixed asset investment index went up to 50.3 in September from 49.7 in August, indicating that the month-on-month growth in fixed asset investment by logistics enterprises has turned positive lately. Meanwhile, the business expectations index rose slightly from 60.5 in August to 60.6 in September, well above the critical 50-mark. Enterprises in the logistics industry are quite optimistic about the business outlook for the next three months.

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Content provided by Fung Business Intelligence
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