China's SME development index dips in February

The Small and Medium Enterprise Development Index for February dropped 0.2 point to 89.2 points from January after a three-month rise, according to the China Association of Small and Medium Enterprises on Wednesday.

The sub-industry of catering and accommodation saw the biggest growth of 0.3 point, and the construction sub-industry suffered the steepest dip of 0.4 point to 89.6. All of the eight sub-industries were below the 100 point mark, which signals boom. The catering and accommodation scored the lowest points of 81.8 among the eight though it experienced a growth.

From elements perspective, the fund index saw the largest rise of 0.4 point to 101.3 points; both cost index and input index suffered the largest drop of 0.7 point to 114.6 and 83.1. Labor force index continued to rise to 105.8. Among the eight elements, macroeconomic feeling index, comprehensive business index, market index, input index and benefit index all fell and were below the 100 mark.

The association deemed growing complication and uncertainty in the external environment, on-going COVID-19 pandemic, weak global economic recovery and geopolitical risk taking a toll on the development for small and medium enterprises as well as rising labor, financing and logistic costs and shortened work days due to the Lunar New Year holiday.