The index tracking the sector's development stood at 51.6 percent 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 percent indicates expansion, while one below 50 percent reflects contraction.

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

Sales of consumer goods rose on holiday sentiments and e-commerce promotions, while storage for commodities is also sought after over winter, said Wang.

Business volume increased last month, though at a slower pace. The business volume sub-index stood at 51.7 percent, down 5.3 percentage points from the previous month, the data showed.

Storage prices continued to rise, with the sub-index for fees at 52.9 percent 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 percent, lowest in the whole year, indicating potential headwinds for the sector amid cooling demand in winter, said the survey.