(Yicai Global) July 4 -- China's logistics sector rebounded to expansion territory in June after three months of contraction amid the country's improving control over the Covid-19 pandemic and a busy e-commerce festival.

The Logistics Performance Index rose to 52.1 in June from 49.3 in May, its second month of climbing after hitting a nearly two-year low in April, the China Federation of Logistics and Purchasing announced today. A mark of 50 separates growth from contraction.

Recovery shows in the components of the big index. The sub-indexes of road transport and warehousing have significantly rebounded. That of express delivery has reached a high-growth range, exceeding 60.

June has one of China's major annual shopping festivals. During the latest 618, e-commerce sales grew from a year earlier. Some of the booming retail segments were computers, communications, and consumer electronics equipment, as well as home appliances, and cosmetics, according to the CFLP.

Logistics companies' operations have improved. An index for main business income rose by 1.6 points from a month earlier. The logistics service price index edged up 0.2 points. Moreover, the capital turnover rate and the equipment utilization index were both above 50, reversing a three-month trend of contraction.

However, recovery is uneven. Small and micro-enterprises have had operational difficulties since April due to the pandemic. Their gauge for main business income was below 40 in June. Several SMEs said that they were struggling to survive, asking for targeted bailout policies and contract orders, according to the CFLP.

Editor: Emmi Laine, Xiao Yi