China’s small and medium-sized enterprises (SMEs) are witnessing a significant upturn, reporting their strongest growth of 2024 in October. An industry index measuring SME activity posted its largest increase of the year, signaling renewed vitality in this crucial sector of the economy.
According to a recent report from the China Association of Small and Medium Enterprises, the Small and Medium Enterprises Development Index reached 89 last month, a 0.3-point rise from September. This index is based on a comprehensive survey of 3,000 SMEs across eight major industries.
This growth rate marks the largest increase this year and the highest level since March 2023, highlighting a positive trend for SMEs. Sub-indexes within the report showed overall improvement, reflecting broad-based gains across various sectors.
Boosted by supportive policies, the sub-index measuring SMEs’ confidence in the macroeconomy climbed to 98.8, up from 98.2 in the previous month. This rise indicates growing optimism among business owners about the economic environment.
The sub-index for industrial production continued its upward trajectory, while those for the construction, transportation, real estate, social services, accommodation, and catering sectors reversed previous declines and showed expansion in October.
The index employs multiple sub-indexes to gauge SME performance and expectations. A reading above 100 reflects an upward trend in business activity, while a reading below 100 indicates diminished vitality.
The latest figures suggest that China’s SMEs are benefiting from favorable policies and a stabilizing economy. As SMEs play a pivotal role in driving economic growth and employment, their continued recovery bodes well for the broader economic outlook.
Reference(s):
cgtn.com
