China's logistics industry prosperity index, an index tracking prosperity of the country's logistics market, rose 0.6 percentage points from a month earlier to 50.3 percent in May, returning to the expansionary territory as a result of growing demand, the China Federation of Logistics and Purchasing (CFLP) said on Wednesday.

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

Among the sub-indices, most saw an increase compared to the previous month. The key indices for business volume, new orders, completed fixed asset investment, and employment all remained in the expansionary range during the month.

To be specific, the new orders sub-index has rebounded for three consecutive months, the federation said.

Compared with April, logistics demand in sectors such as new energy vehicle manufacturing, electronic component manufacturing, and transportation equipment manufacturing continued to grow at a relatively high rate, while logistics demand for seasonal foods, home furnishings and appliances, sports and fitness, and travel and outdoor activities maintained steady growth.

By region, the total logistics business volume index in the eastern, central, and western regions all rebounded compared with the previous month.

"The recovery of China's logistics industry prosperity index to an expansionary territory in May is a direct reflection of the resilience and vitality of the Chinese economy. As pro-growth policies take effect and consumer sentiment improves, demand along the upstream and downstream of the supply chain is steadily being unleashed, and the activity levels in transportation, warehousing, and others have notably increased. This also indicates a coordinated improvement in both supply and demand, as well as an accelerated circulation efficiency in the real economy," said Liu Yuhang, director of the China Logistics Information Center.

In addition, the sub-index for main business costs of logistics enterprises stood at 52.6 percent in May, up 0.3 percentage points from the previous month. Enterprises reported increasing pressure from rising costs such as fuel and labor.

In May, the sub-index for main business profits of logistics enterprises remained unchanged from the previous month.

In terms of market expectations, the sub-index for business activity expectation stood at 55.9 percent, continuing to stay in a high prosperity range. Among them, the business activity expectation indices for railway transportation, road transport, postal and express delivery, and multimodal transport all rebounded month-on-month, indicating that enterprises hold a positive and optimistic outlook for the near-term market.