(Yicai Global) Feb. 2 -- China’s logistics sector has begun to pick up since Jan. 27, the end of the Chinese New Year holiday, with providers expressing greater optimism amid new demand.

Indexes for new orders and business activity expectation rose last month as work and production resumed after the break, with the latter jumping 7 points, data from the China Federation of Logistics and Purchasing showed today. Corporate confidence, investment, and funding also strengthened among the firms surveyed.

But the logistics prosperity index remained in negative territory in January, dropping to 43.4 from 44.7 in December because of the Spring Festival’s impact. A level below 50 indicates contraction.

The business volume index for express postal deliveries added 5.5 points, driven higher by household spending over the holiday. Demand for energy and raw materials gained because of government policy to ensure supplies. The business volume index for rail transport rose 0.7 point.

Express delivery volumes have been on the rise since Jan. 22, the first day of the Chinese New Year, according to data from the State Post Bureau. More than 300 million parcels were delivered each day between Jan. 29 and 31.

The short seasonal impact of the lunar new year period is over, said Liu Yuhang, director of the China Logistics Information Center, adding that the logistics needs of households and manufacturers will gradually pick up from now on.

Staff exchanges and goods circulation will increase as the impact of Covid-19 wanes, according to industry experts, who predict the return to work will accelerate, with a fast rebound in highway traffic and express deliveries.

Editor: Martin Kadiev