According to data released by the China Federation of Logistics and Purchasing (CFLP), the logistics industry in China had a steady and successful start to the first quarter, with notable growth in logistics volume and an optimised demand structure.
In the first quarter, the total value of goods moving through China’s nationwide logistics system reached 91 trillion yuan (USD 12.51 trillion), representing a 5.7% year-over-year increase and a growth rate that was 0.4 percentage points higher than that of the first two months.
The data demonstrated that the macroeconomy of China maintained its trajectory of modest recovery. According to the CFLP, the demand structure kept getting better, logistics operations started steadily and favourably, and the upstream and downstream supply chain segments further solidified their recovery. The primary driver of the growth in logistics demand, industrial product logistics volume, which made up more than 80% of the total social logistics volume, increased by 51.9% annually.
“Logistics serves as a leading indicator for the macroeconomy, particularly for the real economy. The accelerated growth pace reflects the sustained recovery of the domestic economy and heightened economic vitality. This positive trend will significantly boost market confidence and is expected to have ripple effects across both the real economy and capital markets,” Hu Qimu, a deputy secretary-general of the Digital-Real Economies Integration Forum 50, said, as reported by the Global Times.
A rising logistics prosperity index also demonstrates how China’s industries are leveraging the strength of the domestic market to create robust supply chains in the face of trade frictions and external uncertainties.
According to Hu, seamless domestic circulation will support resilience and economic growth even more. High-tech manufacturing and emerging energy-related industries were the primary drivers of the expansion in industrial product logistics.
Liu Yuhang, director of the China Logistics Information Centre, stated that the country’s industrial structure was optimised as evidenced by the sharp increase in the demand for logistics products like intelligent manufacturing equipment, new-energy vehicles, and photovoltaic devices.