China's warehouse storage sector expanded in May, according to the country's state council, citing a survey jointly released by the China Federation of Logistics and Purchasing and CMST Development Co Ltd.
In a statement, it said the index tracking the sector's development rose 3.7 percentage points from April to 50.2%, putting it back in the expansion range.
A reading above 50% indicates expansion, while one below 50% reflects contraction.
"The sector rebounded in May amid faster implementation of pro-growth policies and production resumption in virus-hit areas," China's State Council said, quoting Wang Yong of CMST Development.
It added that the weaker recovery of demand compared to that of supply has led to some products being stockpiled.
Meanwhile, the same report said the sub-index for business volume stood at 53%, up 10.4 percentage points from a month earlier, indicating warming demand as Covid-19 impact tapers off.
The State Council predicted "stable growth" for the sector in the near future, given that the sub-readings for new orders and for enterprises' expectations of business activities both stood in the expansion zone.