Research Group of Small and Micro-sized Enterprise Operating Index

SMEOI decreased to below the boom threshold again

In October 2023, the Economic Daily – PSBC Small and Micro-sized Enterprise Operating Index (Fig. 1, hereinafter referred to as “SMEOI”) reported 49.7, down 0.4 point over the previous month. The decline from above the boom threshold to below ended a three-month expansion trend above the threshold since July.

Fig. 1 Economic Daily – PSBC SMEOI 

Three out of the eight subindices increased, and the other five decreased in October (Fig. 2). Specifically, the market index, purchasing index and confidence index declined, but still stayed above the boom threshold, indicating that the micro and small enterprise market was operating well, the purchasing level was improved, and the confidence was enhanced, but the increase has narrowed. The performance index fell from above the threshold to below, indicating that the performance level of micro and small enterprises changed from rising to a falling trend. The expansion index kept falling below the threshold, indicating that the expansion of micro and small enterprises weakened and the decline increased. The financing index, risk index and cost index all rose from the previous month, but still stayed below the threshold, indicating that the rising trend of operational risk and costs of micro and small enterprises narrowed.

Fig. 2 Subindices of Economic Daily – PSBC SMEOI

Notes:

All indicators are positive indicators, with a value range of 0-100, and 50 as the critical point representing the general condition. An index above 50 indicates positive conditions of enterprises, while an index below 50 indicates the downward trend of enterprises.

Both the risk index and the cost index are adjusted to positive indicators based on the raw data. The larger the index value, the better the situation.