The Chinese mainland's small and medium-sized enterprises (SMEs) reported an improvement in business performance in January, according to an industry index released on Wednesday.
The Small and Medium Enterprises Development Index reached 89.2 last month, up from 89 in the previous month and higher than the reading of a year earlier, as per the China Association of Small and Medium Enterprises.
This growth was driven by accelerated production at the start of the year and increasing consumer demand ahead of the Spring Festival, the association noted in its report.
Enhanced pro-growth policies have bolstered companies' confidence in the future, with the sub-index measuring SMEs' confidence in the macroeconomy standing at 98.8, up from 98.5 in the previous month.
Recovering domestic demand before the festival contributed to the rise in the sub-index for market vitality to 81.2 from 80.8 a month earlier, according to the report.
Despite improved market demand and sales, SMEs continue to face high costs.
The index includes various sub-indices to assess the performance and expectations of SMEs. A reading above 100 indicates an upward trend in business, while a reading below 100 reflects reduced vitality.
Reference(s):
cgtn.com
