China's warehousing index rose to 52.8% in October, marking a 2.0 percentage point increase from the previous month and maintaining its position above the expansion-contraction threshold for the eighth consecutive month. This upward trend reflects both the sector's robust health and positive signs of broader economic recovery. Notably, the October reading represents the highest level in three months, indicating steady improvement across multiple industry metrics.
Key sub-indices showed widespread gains, with the new orders index delivering particularly strong performance. This surge suggests growing demand for warehousing and logistics services as businesses demonstrate increased activity in inventory preparation and supply chain management. Additional positive indicators included improvements in business profits, ending inventory levels, and employment figures.
The ending inventory index climbed to 53.2% in October, up 3.8 percentage points from September, returning to expansion territory. This rebound indicates growing business optimism in response to strengthening market demand. Companies' proactive inventory management strategies aim to ensure timely fulfillment during peak demand periods, thereby enhancing market competitiveness. Meanwhile, the inventory turnover index registered 51.9%, showing a slight monthly decline but remaining in expansion territory, signaling continued efficiency gains in merchandise circulation.
As economic recovery fuels demand, businesses have intensified inventory preparations, driving stock levels higher. Amid rising cost pressures—with the main business cost index at 53.7%—the sector achieved a notable profitability breakthrough. The business profit index reached 50.6%, up 3.1 percentage points month-on-month and crossing into positive territory. This demonstrates that companies are implementing effective operational measures to optimize resource allocation and improve efficiency despite cost challenges.
The employment index rose to 52.5% in October, reflecting easing labor supply constraints as demand increases. This expansion in workforce numbers points to the sector's growing capacity to generate employment opportunities, contributing to broader labor market recovery.
Industry outlook remains optimistic, with the new orders index reaching 53.1% and the business activity expectations index holding strong at 56.2%, despite a slight monthly decrease. The approaching "Double 11" shopping festival is anticipated to further stimulate demand, creating additional business opportunities for warehousing operators.
The October warehousing index data collectively demonstrates the sector's steady emergence from pandemic-era challenges, with supply chain activity showing renewed vitality. As market conditions continue improving and seasonal demand peaks approach, the industry is positioned for sustained growth in coming months. Companies are advised to enhance inventory management and supply chain optimization strategies to capitalize on emerging opportunities and achieve sustainable development in an increasingly competitive landscape.
