China Association of Small and Medium Enterprises: The SME Development Index in May was 89.5, up 0.3 points from April

The Zhitong Finance App learned that on June 10, the China Small and Medium Enterprises Association released data showing that in May, the China Small and Medium Enterprises Development Index (SMEDI) was 89.5, up 0.3 points from April. After 2 months of decline, there was a clear recovery. Among them, the sub-index rose 7 up and 1 flat, the sub-sector index rose 6 up and 2 fell, and the sub-regional index rose 3 up and 1 fell.

The sub-index rose by 7 to 1 square. As shown in the following table, the macroeconomic sentiment index, comprehensive management index, market index, capital index, labor index, investment index, and efficiency index increased by 0.7, 0.6, 0.2, 0.3, 0.2, 0.4, and 0.4 points, respectively, from the previous month. The cost index remained the same as last month, and the level of SME sentiment rebounded for the better.

Table 1. Status of sub-indices

By sector, the index rose 6 and fell 2. As shown in the table below, in May, industry, transportation, real estate, wholesale and retail, information transmission software, and accommodation and catering increased by 0.6, 0.6, 0.2, 0.1, 0.4, and 0.4 points, respectively, from the previous month. The construction industry and social services sector declined by 0.2 and 0.3 points, respectively. The overall operation of the industry is steady, moderate and positive.

Table 2 Indices by sector

The sub-regional index rose by 3 and decreased by 1. In May, the SME development indices for the eastern, central, western and northeastern regions were 90.5, 90.3, 88.7 and 81.8, respectively. Among them, the Eastern, Central and Northeast regions increased, up 0.3, 0.8, and 0.6 points respectively from the previous month, while the western region index declined slightly, down 0.1 points.

Judging from the May SME Development Index, the current operation of small and medium-sized enterprises shows the following main characteristics:

Development expectations have clearly rebounded. In May, the macroeconomic sentiment index reflecting corporate expectations was 98.9, up 0.7 points from the previous month. Among them, the macro situation perception index was 103.7, up 0.6 points from the previous month, and the industry situation perception index was 94.1, up 0.8 points from the previous month. From an industry perspective, the macroeconomic sentiment index for industry, construction, transportation, lodging, and catering increased significantly.

Market demand has been improving steadily. In May, the market index was 81.5, up 0.2 points from the previous month. Of the 8 industries surveyed, the market index for 5 industries rose. Among them, the domestic order index for 5 industries increased, and the sales volume index for 4 industries increased.

The funding situation has improved. In May, the capital index was 101, up 0.3 points from the previous month. Among them, the Liquidity Index, Financing Status Index, and Accounts Receivable Index were 85.7, 91.1, and 121.2, respectively, up 0.2, 0.8 and 0.2 points from the previous month. Of the 8 industries surveyed, the liquidity index of 7 industries increased, and the financing index of 6 industries increased.

Demand for labor increased, and supply slowed slightly. In May, the labor force index was 106, up 0.2 points from the previous month. Among them, the demand index was 98.1, up 0.6 points from the previous month. The supply index was 114, down 0.1 points from the previous month. Of the 8 industries surveyed, the demand index for 5 industries increased, and the supply index for 5 industries declined.

The willingness of enterprises to invest has increased. In May, the investment index was 82.8, up 0.4 points from the previous month. Of the 8 industries surveyed, the investment index for 4 industries increased.

Corporate costs were generally flat. In May, the cost index was 112, the same as last month. Of the 8 industries surveyed, the enterprise cost index for 3 industries increased, and the labor cost index for 6 of these industries declined.

Corporate profits have rebounded. In May, the efficiency index was 74.8, up 0.4 points from the previous month. Of the 8 industries surveyed, the efficiency index for 4 industries increased.

After the Politburo meeting of the Central Committee was held on April 25, policy effects continued to be unleashed. Tariff negotiations between China and the US achieved phased results, the “Private Economy Promotion Law” was implemented, expectations for the development of small and medium-sized enterprises have clearly rebounded, and market demand has steadily improved. At the same time, uncertainty about the external environment still exists, domestic demand and consumption promotion need to be further boosted, and the difficulties and challenges facing small and medium-sized enterprises are still great. Next, we must insist on expanding demand and revitalizing consumption, take more measures to help enterprises in need, accelerate the integration of domestic and foreign trade, accumulate more favorable conditions, create greater market opportunities for small and medium-sized enterprises, and consolidate the upward momentum.

This article was selected from the official website of the “China Association of Small and Medium Enterprises”. Zhitong Finance Editor: Jiang Yuanhua.