China's SMEs see slight decline in May business activities

Source:China Sport ShowRelease time:18-Jun-2024Clicks:

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China’s small and medium-sized enterprises (SMEs) experienced a slight decline in business activities in May, according to the China Association of Small and Medium Enterprises. The small and medium enterprises development index fell by 0.2 points from the previous month, landing at 89.2. Despite the monthly decline, this figure represents an improvement from the 88.9 recorded in the same period last year.

In May, the sub-indexes for labour force and business capital were both above 100, indicating positive conditions in these areas. However, sub-indexes reflecting sentiment on the macroeconomy, overall business operations, market conditions, investment, and earning performance all remained below 100.

The association highlighted that development confidence and market expectations among China’s SMEs have yet to see significant improvement. The index is derived from a survey of 3,000 SMEs across China. The survey revealed that these enterprises are grappling with decreasing demand and high operating costs, according to Chinese media reports.