Chinese SME index rises to 89.1 in June after three months of declines

China’s Small and Medium Enterprises Development Index (SMEDI) rose 0.2 points in June from a month earlier to 89.1, ending three straight months of declines as the country’s policies to promoting economic recovery continue to have an effect, the China Association of Small and Medium-Sized Enterprises (CASME) reported on Monday.

Of the eight sub-indices surveyed under SMEDI, six of them registered higher results in June compared to May. Both the market index and the general inputs index rose 0.4 points month-on-month, the largest increase among the sub-indices, reflecting improving market expectations.

From an industry standpoint, five of the eight sectors analyzed experienced growth in June. The construction sector led the way, with an increase of 0.4 points, followed by the industrial sector, which rose 0.3 points.

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In view of the economic situation, it is necessary for China to deploy more effective measures to strengthen growth momentum, optimize the economic structure and promote a sustained economic recovery, according to CASME.

From an industry standpoint, five of the eight sectors analyzed experienced growth in June. The construction sector led the way, with an increase of 0.4 points, followed by the industrial sector, which rose 0.3 points.

China should strive to expand effective demand, provide enterprises with new growth engines and reduce their costs, promote transformation and upgrading, as well as high-quality development of small and medium-sized enterprises, the association said.

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