Index shows steady performance in industry

China's logistics sector, a bellwether for overall economic activity, expanded at a steady pace in November, offering the latest sign that domestic demand is picking up and the country's economic recovery is gaining further momentum, analysts said.

The logistics performance index came in at 52.8 percent last month, 0.2 of a percentage point higher than in October, data from the China Federation of Logistics and Purchasing showed earlier this month.

The index tracks business volumes, new orders, employment, inventory turnover and equipment utility rates in the sector. A reading above 50 indicates expansion, while one below points to contraction.

China's logistics sector has sustained a robust expansion in the fourth quarter, driven by strengthening industrial upgrades and increased consumer demand, said Hu Han, an analyst with the China Logistics Information Center.

Key drivers behind the expansion include rising demand for communication equipment, electrical machinery, furniture and home appliances, agricultural and sideline products, as well as new energy vehicles, Hu said.

Over the past months, Chinese policymakers have put forward a holistic set of forceful policies, which includes fiscal, monetary and property market measures, aimed at giving a much-needed boost to anchor market sentiment and strengthen domestic consumption.

Wen Bin, chief economist at China Minsheng Bank, said the broad-based increase in logistics activity signals that the potent policy package has strengthened the momentum of China's economic recovery, with the manufacturing and consumer sectors regaining their footing after a challenging period.

The seasonal pickup in energy and raw material consumption has also provided a boost to logistics services, the data showed.

The upbeat logistics data aligns with other recent economic indicators, including a rebound in industrial production, stabilizing consumer spending and increased infrastructure investment.

Data from the National Bureau of Statistics showed that China's purchasing managers index for the manufacturing sector — a main gauge of factory activity — came in at 50.3 last month, up from 50 in October.

The November figure marked the second straight month that the manufacturing PMI has remained in expansion, signaling a sustained recovery in the industrial sector.

According to a report by Zheshang Securities, China's total retail sales of consumer goods are expected to grow by 4.5 percent year-on-year in November, signaling a strengthening of consumer demand in the world's second-largest economy.

He Hui, chief economist at the federation, said China's economy is poised to maintain its steady recovery momentum through the final stretch of the year, setting the stage for a robust performance in the logistics market.

With the effect of the policy package still unfolding, the logistics market is expected to remain in an active operating state, as enterprises ramp up their production and distribution to meet the robust demand toward the close of the year, He said.