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China's logistics activity stable in May

Xinhua, June 2, 2016 Adjust font size:

China's logistics activity remained stable in May as the economy showed more signs of stabilizing, official data showed on Thursday.

The logistics performance index (LPI) for May came in at 54.2 percent, unchanged from a month earlier, according to the China Federation of Logistics and Purchasing.

A reading above 50 percent indicates expansion from the previous month, while a reading below indicates contraction.

In breakdown, the index for new orders stood at 55 percent, recovering 1.5 percentage points from that in April and showing improvement in the real economy.

The index measuring costs of main business climbed one percentage point to 57 percent, putting strains on the profitability of logistics companies.

China's economy expanded 6.7 percent year on year in the first quarter of 2016, the slowest growth since the global financial crisis hit in early 2009. But a slew of upbeat economic data in March and April raised hopes for a stronger turnaround than expected. Endi