(Yicai) May 9 -- The index measuring the operational health of Chinese small- and medium-sized companies rose for a second month in a row in April thanks to macroeconomic policies taking effect and the springtime economy boosting the continuous recovery of the service industry.

The China Small and Medium Enterprises Development Index came in at 89.4 last month, up 0.1 point from March, the China Association of SMEs announced today. The index also climbed from the level a year earlier and 2022, it added. A mark above 100 indicates expansion.

Springtime economy refers to the seasonal consumption behavior during Spring, with tourism and cultural consumption as key aspects.

With the gradual effectiveness of macroeconomic policies, the positive factors in China's economic operation have increased since the start of this year, the CASME said. However, many challenges remain, mainly insufficient effective demand and overcapacity in some industries, resulting in significant pressure on corporate operations, it noted, adding that the difficulties SMEs face remain prominent, and the business environment needs further improvement.

The macroeconomic sentiment index, which reflects the SMEs' confidence in future development, fell 0.1 point to 98.9. The market index remained unchanged at 81.3, driven by consumer goods trade-in programs and other policies, with market expectations staying stable.

The cost index stood at 112.6 last month, unchanged from the prior month. International oil prices have rebounded, increasing commodity and raw material prices, while production and labor costs remained high.

The People's Bank of China, the country's central bank, continues to increase the size of loans for agriculture and small businesses and implement supportive tools for inclusive lending to SMEs. The funding index rose 0.2 point to 101.2.

Affected by rising costs, intense market competition, and other factors, the profitability index dropped 0.1 point to a record-low of 74.2.

Editor: Martin Kadiev