China’s SMEs development index edges down in July

China’s Small and Medium Enterprises (SMEs) Development Index, based on a survey of 3,000 SMEs, edged down in July, industry data showed Tuesday.

The index came in at 88.3 in July, down 0.1 points month on month, said the China Association of Small and Medium Enterprises.

Amid complex and grim external environment and sporadic COVID-19 flare-ups at home, the foundation of China’s economic recovery remained weak, weighing on the business performance of SMEs last month, the association said.

The index contains multiple sub-indexes to gauge the performances and expectations of SMEs. A reading below 100 indicates dented vitality.

Last month, the sub-indexes for transportation and storage as well as wholesale and retail sectors rose 0.1 points and 0.2 points, respectively, both posting a three-month rising streak, according to the association.

The sub-index for financing remained above 100 in July, indicating eased financing strains on smaller enterprises in the country.

To help SMEs cope with difficulties, the industry group called for efforts to step up the implementation of the State Council’s policy package and further improve business environment.