China Logistics Sector Records Increased Investment and Higher Equipment Utilization in September

China's logistics sector recorded rising fixed asset investment, employment growth, and stronger market confidence in September, according to industry data released on Sunday by the China Federation of Logistics and Purchasing (CFLP). The fixed asset investment completion index for the sector rose by 0.4 percentage points month on month, maintaining a multi-month streak in the high prosperity range.

Operational capacity and efficiency also showed gains, CFLP reported. The equipment utilization index climbed 0.5 percentage points from August to 50.1 percent, crossing into the expansion territory for the first time this year. CFLP attributed this to more effective deployment of vehicles, warehousing, and other facilities, which improved capital and inventory turnover and smoothed industrial supply chains. In addition, the sector's employment index rose by 0.2 percentage points.

Market expectations showed growing optimism ahead of the fourth quarter. The business activity expectation index reached 56.2 percent in September, up by 1.8 percentage points month on month. CFLP noted that enterprises expressed stronger investment appetite and commercial confidence regarding market prospects heading into the end of the year.

Cost pressures nevertheless continued to weigh on operators. CFLP data showed that the main business cost index remained above 52 percent across the first nine months of the year, rising 0.4 percentage points in September amid higher expenses for labor, management, and energy. Despite these overhead challenges, corporate profitability stabilized, with the main business profit index remaining flat month on month and average profit levels in the third quarter holding steady.

CFLP Vice President He Hui said that infrastructure gaps are being addressed through national development of the "Six Networks"—comprising water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipelines, and logistics networks. He added that logistics companies are accelerating inventory turnover, updating business models, and adopting digital and intelligent upgrades to improve efficiency and offset cost burdens.