China's logistics sector remains in expansion zone in May, indicating economic resilience: analyst

Workers transport cargo for export using a forklift at the warehouse of Ningbo Blue Dragon Logistics Co in Ningbo, East China's Zhejiang Province, on May 16, 2025. (Zhang Yashu/GT)

The index tracking the business climate of China's logistics sector stood at 50.6 in May, continuing its streak above the pivotal 50-point mark, according to the China Federation of Logistics and Purchasing (CFLP) on Thursday.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

This reading for May indicates that the logistics industry demonstrated a sustained growth trend, which is a clear sign of the nation's strong economic resilience, a Chinese expert said.

Consumer-driven logistics demand emerged as a highlight. Driven by policies promoting consumer goods trade-ins, holiday consumption, and increased inter-regional travel, logistics orders for home appliances and electronic products soared by 10-15 percent year-on-year, the CFLP said.

The postal express sector saw its business volume index hit 69.4, a 0.8-percentage point increase month-on-month. Road transportation maintained its expansionary trend with an index of 51.3, while rail transport, essential for energy supply, stood at 54.2, ensuring the stable movement of bulk cargo.

He Hui, vice president of the CFLP, told the Global Times that the logistics business climate index in May showed that demand for logistics services nationwide continues to expand.

On the one hand, it is driven by logistics in the consumer sector; and on the other hand, the demand for industrial logistics remains stable and grows with resilience, He said.

Meanwhile, investment in the logistics sector continued its upward trajectory, bolstering confidence in future development. The fixed-asset investment completion index climbed to 54.2, the third consecutive month of growth, according to the CFLP.

On the corporate side, operational efficiency improved, with both the capital turnover and inventory turnover indices on the rise. Small and micro-sized enterprises, the most dynamic segment of the industry, demonstrated remarkable resilience, with their main business profit indices increasing more significantly than those of larger enterprises, the CFLP said.

Additionally, the business activity expectations index has remained in a relatively high prosperity range of more than 55 for three consecutive months. Enterprises remain optimistic about the logistics service sectors of railway-water combined transport, the low-altitude economy, general aviation, and high-end manufacturing.

These figures vividly illustrated the vitality and resilience of China's economy, which lays a solid foundation for the stable operation of the economy in the second quarter, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday.

The booming logistics sector is a multi-faceted reflection of the heightened vibrancy in domestic economic activity. As the logistics sector expands, it indicates that the arteries of the supply chain are being unclogged, facilitating the seamless flow of goods from production to consumption, Wang said.

China has also made strides in enhancing its global logistics connectivity. As of the end of May, more than 100 new international air cargo routes had been launched this year, with 26 added in May alone. These new routes, mainly connecting Asia and Europe, transported a diverse range of goods, including cross-border e-commerce products, electronics, and auto parts, according to the CFLP.