BEIJING — China's warehouse storage sector expanded slightly in May amid the gradual recovery of market demand, industrial data showed.

The index tracking the sector's development climbed by 0.1 percentage points over the previous month to reach 50.4 percent in May, according to the China Federation of Logistics and Purchasing.

A reading above 50 percent indicates expansion, while anything below that reflects contraction. The index has stayed above the boom-or-bust line for three consecutive months.

The efficiency of inventory turnover has improved. In May, the inventory turnover index was at 56.4 percent, 0.1 percentage points lower than the previous month, but still at a high level. This reflected that with the gradual recovery of market demand, the turnover efficiency of commodity inventory has improved.

The subindex tracking business profits stood at 50.7 percent in May, down 0.4 percentage points from the previous month but still in the expansion range.