China's warehouse storage sector contracts in April

BEIJING -- China's warehouse storage market shrank in April due to COVID-19 disruptions, according to a survey jointly released by the China Federation of Logistics and Purchasing and CMST Development Co Ltd.

The index tracking the sector's development dropped 0.4 percentage points from March to 46.5 percent, the survey showed.

A reading above 50 percent indicates expansion, while one below 50 percent reflects contraction.

The resurgence of COVID-19 has led to a decline in demand in the commodities and consumer goods markets and affected road transportation, said Wang Yong with CMST Development.

The country has introduced a string of measures to ensure smooth logistics, which largely increased the efficiency of road transportation, Wang added.

Last month, the sub-index indicating enterprises' expectations for business activities stood at 56.3 percent, up 1.9 percentage points from a month earlier, according to the survey.

It predicted a steady recovery of the sector in the future, driven by robust investment growth in infrastructure construction and the release of delayed consumer demand.