China logistics industry slows in July

China logistics industry slows in July

Logistics is an industry we seldom examine, but it’s all around us – the flow of goods and services from one point to another. It’s also a barometer of growth – when it slows, it indicates an easing in manufacturing or factory activity.

China’s logistics industry slowed in July, as demand for exports weakened amid Europe’s debt crisis, sluggish US growth, and a moderating domestic economy.

Figures from China Federation of Logistics and Purchasing shows the nation’s logistics industry is slowing. The rate of growth in the January to July period dropped by 1 tenth of a percent compared to the first 6 months of the year.

Chinese industrial production, which is heavily dependent on logistics, has slowed following repeated interest rate hikes and other curbs as the government tries to moderate economic growth and cool stubbornly high inflation.

China’s logistics industry slowed in July, as demand for exports weakened.

Cai Jin, Vice Chairman from China Fed. Of Logistics & Purchasing said, “The deceleration of logistics is mainly due to the threat of inflation to our nation’s economy. Therefore, we’re moving in the direction of moderate easing.”

Meanwhile, total costs in the logistics industry increased by nearly 20 percent during the January to July period year on year. Experts say costs are rising due to climbing raw material, power and labor costs.

Cai said, “Despite decreasing international oil prices this year, China’s oil price has remained at a relatively high level. From January to July this year, oil costs contributed a lot to total costs in the logistics sector. In order to cut costs, improving efficiency is crucial, this in turn will improve the whole nation’s economic efficiency.”

China’s economy grew 9.5 percent in the the second quarter of this year, slightly down from the previous quarter, but still strong enough to ease fears of a hard landing for now.

China’s logistics industry slowed in July, as demand for exports weakened.   Editor:Li Wanran |Source: CNTV.CN | Reproduced by: www.nicegiftbox.com