China Logistics in November: Prosperity Index Hits 50.9%, Market Outlook Remains Optimistic

China's logistics sector maintained its expansion momentum in November with a Logistics Prosperity Index (LPI) of 50.9%, driven by balanced growth across regions and strong investment confidence in the future.

Staff members sort packages at a logistic center in Zaozhuang City, east China's Shandong Province

Staff members sort packages at a logistic center in Zaozhuang City, China's Shandong Province (Source: Xinhua / Phaata)

China's logistics sector continued to record expansion in November, with indicators for both demand and investment signaling stable growth. This is according to the latest data released on Wednesday (Dec 3) by the China Federation of Logistics and Purchasing (CFLP).

According to the CFLP, logistics demand continued to increase in November, and the market outlook remains highly optimistic. Key indicators such as business volume, new orders, employment, and business activity expectations all remained within the expansionary range.

Specifically, the Logistics Prosperity Index (LPI) for November reached 50.9%, up 0.2 percentage points from the previous month, remaining in expansionary territory (a reading above 50 indicates expansion, while below 50 reflects contraction).

Balanced Development Across Regions

Geographically, business volume indices in Central and Western China reached 51% and 51.2% respectively, outperforming the national average. Meanwhile, the index in Eastern China recorded 50.5%, a slight increase of 0.1 percentage points from the previous month.

Commenting on this trend, He Hui, Vice President of the CFLP, said: " [The growth rates of business volume] in the eastern, central and western regions of China are all stable in the expansion range, showing a balanced and coordinated development trend."

Sector Divergence: Industry and E-commerce Lead the Way

The data reveals a divergence in logistics demand. Compared to October, logistics demand for industrial products recovered in November, while demand for energy and raw materials continued to decline.

Sectors maintaining robust logistics demand included transportation equipment, home appliances, furniture, smart devices, automobiles, and auto parts.

Notably, both offline physical stores and e-commerce platforms are advancing in tandem. The total business volume index for the postal and express delivery sector reached 70.2% in November; although dipping slightly by 0.3 percentage points from its peak, it remains at a very high level.

Strong Investment Confidence

Investment activity in the logistics sector remained vibrant in November. The fixed-asset investment index for the industry reached 55.4%, sitting deep within the expansionary range.

The business activity expectation index stood at 54.9%, continuing to maintain a positive state. Sub-sectors including multimodal transport, air logistics, and postal delivery all maintained strong expectations, bolstering industry-wide confidence for the month.

Concluding on the market outlook, He Hui noted: "Judged by the investment index and the expectation index, they both remain within an expansion range, indicating the industry's relatively strong confidence in future development of the market."

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