BEIJING, Jan. 5 -- China's logistics market, a high-profile indicator of economic operation, saw progress and improvement in the past year, underpinned by steady economic recovery and new economic drivers.

The annual average logistics performance index stood at 51.8 percent in 2023, above the boom-bust line of 50 percent and 3.2 percentage points higher than the previous year, data from the China Federation of Logistics and Purchasing (CFLP) showed.

Sub-indices for business volume, new orders, and equipment utility rates all posted notable growth compared to 2022, according to the CFLP.

Analysts said the robust trend of the logistics sector is likely to extend into 2024 as the December 2023 reading grew 0.2 percentage points month on month to 53.5 percent, with most of the sub-indices in expansion territory, indicating upbeat business expectations.

Echoing the brisker logistics activities, another index that tracks road logistics price recorded a 0.9 percent year-on-year growth in December, amid general improvements in road transport demand and supply.

According to Hu Han, a CFLP analyst, with policies in place to stabilize the economy and boost confidence, the industrial production and consumption continued to recover in 2023, which buoyed the transport demand.

The country's growing industrial improvements, combined with the improving logistics supply structure, further consolidated the industry's recovery trend, Hu said.

Companies' profitability in the fourth quarter of 2023 performed significantly better than in the third quarter and first half, Hu said, adding that the indices gauging the operating profit of small and micro logistics firms have rallied for five consecutive months.

With its improved logistics infrastructure development, extensive warehouse network and advanced storage facilities, China's logistics market maintained its position as the world's largest logistics market for the seventh consecutive year in 2022.

The robust logistics sector is a prime testament to the country's warming consumption demand and robust economic dynamics.

Closely linked to the country's burgeoning e-commerce business, the courier sector saw its annual delivery volume exceed 120 billion parcels for the first time.

During the annual "Double 11" online shopping spree, about 7.51 billion packages were sent across the country from Nov. 1 to 16, 2023, representing a 30.9 percent growth year on year.

The consistent pursuit of innovation is also an important contributor to the booming logistics sector, said Zhou Zhicheng, a researcher at the CFLP.

In November 2023, transport orders for equipment manufacturing and high-tech manufacturing sustained rapid growth, up by 9.8 percent and 6.2 percent year on year, respectively, data showed.

Green energy-related logistics remained active as well. In November 2023, logistics demand in new energy vehicles and solar cells grew rapidly, with their growth rates above 35 percent year on year.