BEIJING, May 7 -- China's logistics industry expanded at a slower pace in April but companies remain upbeat about the sector's outlook as a sustained economic recovery and holiday consumption is expected to boost logistics activities.

The index tracking the country's logistics market performance stood at 53.8 percent in April, down 1.7 percentage points from the previous month, data from the China Federation of Logistics and Purchasing (CFLP) showed.

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

He Hui, the chief economist of the CFLP, attributed the slight drop of the index to seasonal fluctuations as a robust recovery of the logistics sector in previous months led to a relatively high base.

Large and medium-sized logistics firms saw their business demand remain stable last month, while small and micro companies in the sector logged shrinking demand in April compared with a month earlier, He said.

The sub-index for new orders came in at 52.3 percent in April, down 1.4 percentage points month on month.

Looking forward, logistics companies are optimistic about the sector's outlook as demand buoyed by Chinese economic recovery and consumption during holidays is expected to be gradually unleashed.

The sub-index tracking business activity expectations of the sector stood at a high level above 55 percent.