China’s Small and Medium-sized Enterprises (SMEs) witnessed a positive improvement in their business performance during January, as indicated by an industry index released on Wednesday, Xinhua reported.
According to the China Association of Small and Medium Enterprises, the Small and Medium Enterprises Development Index, which is based on a survey of 3,000 SMEs representing eight major industries, reached 89.2 last month.
This figure showed an increase from the previous month’s reading of 89 and surpassed the reading from the same period the previous year.
The report attributed this growth to accelerated production at the beginning of the year and an increase in consumer demand leading up to the Spring Festival.
The implementation of pro-growth policies has also contributed to boosting companies’ confidence in the future, with the sub-index measuring SMEs’ confidence in the macroeconomy rising to 98.8 from the previous month’s reading of 98.5.
The report further highlighted that the recovering domestic demand ahead of the festival contributed to an increase in the sub-index for market vitality, which rose to 81.2 from the previous month’s reading of 80.8.
However, despite the improved market demand and sales, SMEs still face challenges in coping with high costs, according to the report.
The index includes various sub-indexes that assess the performances and expectations of SMEs. A reading above 100 indicates an upward trend in business, while a reading below 100 suggests a decline in vitality.
