China's warehousing activity index returned to growth territory in June
The economy is like a complex mechanism where every cog affects the overall performance. Warehouses are not just storage spaces but living indicators of the economic system's health: when they fill and empty rhythmically, it means production and consumption have found common ground. The return of the warehousing activity index to growth territory is a signal that the internal mechanisms of the economy are beginning to work more smoothly, with goods flows gathering speed and promising more stable forward momentum.
According to data released on Tuesday by the China Federation of Logistics and Purchasing, China's warehousing activity index stood at 50.2% in June, up 0.6 percentage points from May. The warehousing activity index is a composite indicator reflecting business activity in the warehousing sector. A reading above 50% indicates expansion, while below 50% signals contraction. The index's return to growth territory demonstrates steady positive momentum. Among the sub indices, the new orders index showed notable growth, while demand for warehousing services for bulk commodities linked to infrastructure performed relatively well.
The bulk goods index reached 54%, up 2.3 percentage points and hitting a relatively high level. By product category, the new orders index for steel, building materials and mechanical equipment rose slightly, with warehousing activity remaining high. In the consumer sector, thanks to holiday spending during the Dragon Boat Festival and e commerce promotions, the new orders index for food and home appliances remained in growth territory.
Warehouse utilisation also increased significantly, reaching 54% in June, up 4 percentage points from May. Utilisation rates for steel, coal, food and medical products exceeded 50%. Liu Yuhan, director of the China Logistics Information Centre, noted: "With rising demand, good coordination has been established between upstream and downstream industries, inventory reduction is accelerating and turnover efficiency is improving. As an intermediary link between production and consumption, increased activity in the warehousing sector reflects improved supply demand coordination in the macroeconomy, leading to smoother economic flows."
In the second quarter, the warehousing sector experienced minor fluctuations before rebounding towards the end of the quarter. Going forward, thanks to policies aimed at stabilising the economy and the implementation of major projects such as the "Six Networks" — water supply networks, new type power grids, computing networks, next generation communication networks, urban underground pipeline networks and logistics networks — demand for warehousing services will continue to grow, supporting stable and positive sector growth.
As CCTV+ reports. Economic analysts attribute the positive momentum to the gradual recovery of industrial production and retail sales, which is laying the groundwork for further strengthening of logistics infrastructure.
