China's warehouse storage sector reported expansion for the fifth consecutive month in December.

China state media Xinhua said the index tracking the sector's development stood at 51.6% last month, down 2.5 percentage points from November, according to a survey jointly released by the China Federation of Logistics and Purchasing and CMST Development Co., Ltd.

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

Wang Yong, an executive assistant at CMST Development, said the December reading showed rising demand for storage services.

The expansion was boosted by sales of consumer goods which rose during the holidays and continued growth in e-commerce. Storage for commodities is also sought after over winter.

Business volume increased last month, though at a slower pace, Xinhua said, adding that the business volume sub-index stood at 51.7% down 5.3 percentage points from the previous month, citing industry data.

Meanwhile, the report noted that storage prices continued to rise, with the sub-index for fees at 52.9% in December, up 1.8 percentage points from the previous month.

The sub-index gauging expectations for future business activities came in at 50.6%, lowest in the whole year, indicating potential headwinds for the sector amid cooling demand in winter.