A worker measures the roll size at Naknor Technology in Xingtai, north China's Hebei province, on Feb 6, 2023. (PHOTO / XINHUA)

BEIJING – China's small and medium-sized enterprises (SMEs) experienced a further increase in their activities in February amid a steadily warming economy, industrial data showed Friday.

The Small and Medium Enterprises Development Index, calculated based on a survey of 3,000 SMEs from eight major industries, came in at 89.6 last month, up from 88.9 in January and 87.9 in December, the China Association of Small and Medium Enterprises said in a monthly report.

Thanks to government pro-growth measures, SMEs were more confident in business development

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The figure, although still lower than the boom-and-bust line of 100, was the highest since August 2021.

The sub-indexes for all eight major sectors rallied in February, with that of the social service industry, the information transmission, computer service and software industry, and the accommodation and catering industry logging the biggest improvement.

Thanks to government pro-growth measures, SMEs were more confident in business development. This was reflected in their improved market expectations and an increased willingness to invest, the association said, adding that the capital shortage was eased and labor demand increased.

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But the association still cautioned about difficulties in business operations and structural upgrading and called for further improving the business environment and ensuring the implementation of relief measures.