(Yicai Global) May 9 -- The China Small and Medium Enterprises Development Index, which assesses the operational health of the country’s small to medium-sized businesses, declined for the third month in a row last month amid a fresh wave of Covid-19 outbreaks, the Ukraine crisis and high global inflation, according to the latest industry data.

The index dipped 0.3 point in April from March to 88.3, according to a report by the China Association of Small and Medium Enterprises released today. The latest round of Covid-19 outbreaks has paralyzed some the country’s biggest economic hubs along the eastern coast, causing many firms to halt production.

Micro, small and medium-sized enterprises in particular are experiencing greater operating difficulties, are struggling to digest the rising costs of raw materials and have insufficient capacity utilization rate, low confidence in business development as well as weak expectations, the association said, which tracks 3,000 SMEs across eight sectors.

All the sub-indexes also fell for the third consecutive month. The macroeconomic perception sub-index indicating confidence was down 0.4 point to 96.9, the market sub-index reflecting market expectations also slid 0.4 point to 80.5, while the costs sub-index dropped 0.6 point to 113.6 on the back of surging commodity prices.

The business returns sub-index softened 0.3 point to 73.4 because of the higher prices of raw materials and weak end-user demand. And poor appetite for investment caused the investment index to fall 0.4 point to 82.1.

Of the eight sub-industries, only the real estate sector index edged up 0.1 point. The rest declined for the second month in a row.

The association will cut taxes and fees, create more jobs, hold more fundraisers, unclog logistics and issue other bailout policies for small businesses that are severely impacted by the coronavirus, said the non-profit organization, which counts SMEs, big firms that support SMEs as well as academic experts among its members. It will guarantee the supply of fuel and resources, stabilize prices, secure employment, control key risks and steady market expectations, it added.

Editor: Kim Taylor