THE latest figures posted by China Federation of Logistics and Purchasing (CFLP) show that China's Logistics Prosperity Index (LPI) climbed 0.5 percentage points to 52.9 per cent in August from July's 52.4 per cent.

The increase ended a decline of four months since April, indicating that the logistics industry is leveling off, Xinhua reports.

The 12 sub-indexes of LPI were all in positive territory above 50 per cent. A slight decline was posted in the average inventory index, facility utilisation index, core business cost index and fixed assets investment index. The rest of the sub-indices were up.

Railway logistics managed to recover steadily, fueled by rising demand and the nation-wide railway reform. Eastern region of the country did better than the west, maintaining constant growth.

Compared to July, new order index grew 0.3 percentage points to 52.6 per cent. Business volume index went up 0.2 percentage point to 57.1 per cent. Capital turnover index increased 0.6 percentage points to 52.1 per cent. 

Logistics service price index was at 50.6 per cent, up 2.6 percentage points. Employee index climbed 0.8 percentage point to 50.6 per cent. Business activity expectation index stopped falling and rose 0.8 percentage point.

China Logistics Information Centre deputy director He Hui said the rebound of LPI shows that the logistics sector is improving steadily. The rise of business volume index and employee index means both the upper and lower end of the supply chain are becoming more active. 

The increase in new order index indicates that demand is rising. The recovery of business activity expectation index shows confidence on the prospect of the industry in the upcoming peak season.