China's Logistics Prosperity Index Holds in Expansion as Orders Rise

China's logistics prosperity index stood at 50.4 percent in July, remaining in expansion territory despite a 0.2 percentage point dip from June, according to data released by the China Federation of Logistics and Purchasing. The new orders sub-index climbed 0.2 percentage points to 50.5 percent, marking five consecutive months of recovery. Gains were broad-based across eastern, central, and western regions, driven by resilient industrial manufacturing logistics, multimodal transport initiatives, and summer consumer travel and retail demand.

Logistics activity serves as a vital barometer for broader macroeconomic health, trade flows, and consumer sentiment. Sustained expansion in logistics volumes and five straight months of order growth indicate underlying resilience across Chinese supply chains, even as headline manufacturing indicators face headwinds.

China's logistics prosperity index stood at 50.4 percent in July, staying within expansion territory above the 50-point threshold despite a 0.2 percentage point month-on-month decline, according to data published by the China Federation of Logistics and Purchasing. The overall business volume index held in expansion territory for a third consecutive month, according to Hu Han, deputy chief economist at the China Logistics Information Center. Railway transport, road transport, postal express services, and multimodal transport all recorded expansion. In particular, the business volume index for multimodal transport climbed 0.5 percentage points from June to reach 54 percent. Hu noted that regional logistics hubs have continued to advance operational innovations, with cities including Zhanjiang, Zhengzhou, Lianyungang, Shenzhen, and Ningbo achieving measurable breakthroughs in water-to-water transshipments and rail-sea combined transport. Industrial and consumer-facing logistics demand both maintained steady momentum throughout July. Industrial freight volumes grew steadily across transportation equipment, communications and electronic equipment, electrical machinery, and smart home appliances. This strength supported increased volumes for railway general freight as well as full-truckload highway shipments. At the same time, summer travel and seasonal leisure consumption—encompassing study tours, family vacations, and cultural events—stimulated cross-regional flows of people, commerce, and cargo. Logistics operators reported month-on-month order increases for outdoor travel equipment, regional agricultural specialties, and fresh food products. The sector's new orders index rose 0.2 percentage points month-on-month to 50.5 percent in July, representing its fifth consecutive month of expansion. Demand expanded across the country, with new order indices rising by 0.4 percentage points in eastern China and by 0.1 percentage points in both central and western regions. By sector, new order indices for railway transport, road transport, and multimodal operations each saw month-on-month improvements.