What Is Hidden Inside China’s Warehouses?

Sector activity index exceeds 50 percent — stable demand and smooth supply chains

Here is how CCTV+ reports on it. According to data released on Saturday, China’s warehousing sector remained in expansion territory for the second straight month in April, reflecting stable development and high market activity. The index tracking the sector’s performance stood at 51 percent, according to the China Federation of Logistics and Purchasing.

A reading above 50 percent indicates growth, while a reading below 50 percent signals contraction. Key sub-indexes for new orders, warehouse utilization rates and final inventories stayed in growth territory, while the average inventory turnover index maintained a high level of prosperity.

These indicators point to steady growth in demand for warehousing services, efficient cargo turnover and unimpeded supply chain operations. By product category, the busy production and construction season boosted demand for raw materials such as chemicals, coal and mechanical equipment.

Meanwhile, stockpiling ahead of the Labour Day holiday in early May led to a significant rise in warehouse stocks of consumer goods, including food, home appliances and agricultural products.

The business activity expectations index for April came in at 55.1 percent, remaining at a high level and reflecting continued optimism among enterprises.