(Yicai Global) Dec. 8 -- China's Small and Medium Enterprises Development Index, a key gauge of SMEs' business confidence, slipped for the third straight month in November to the lowest level this year as the Covid-19 pandemic persists.

The SMEDI, which is based on surveys, dropped to 88.1, down from 88.2 in October, according to data the China Association of Small and Medium Enterprises released today.

New Covid-19 outbreaks have curbed flows of personnel and logistics while market uncertainties and economic downward pressures have increased, the association said, adding that the foundation for SMEs' recovery needs to be cemented.

The two sub-indexes of macroeconomic sentiment and funding conditions were the only ones to remain unchanged at 96.5 and 100.8, respectively, while the other six indicators fell. A mark of 100 separates growth from contraction.

The sliding sub-gauges include those for the market, labor force, performance, and operations. The index for labor fell by 0.1 point to 105.5 and that for costs moved 0.2 point lower to 112.6, still above the 100 mark.

In terms of sectors, the two fields of construction, as well as that of IT and software, dived the most. Construction dropped by 0.4 points to 88.8 and the latter declined by 0.3 points to 87. The only sector that logged an increase was wholesale and retail, up by 0.2 point to 88.1. At the bottom was the sector of accommodation and catering, falling by 0.1 point to 80.7. In total, eight fields recorded scores in contraction territory.

The momentum for economic recovery has become weaker as the pandemic lingers, the association said. This means that sellers of goods and services, especially SMEs, are facing increasing difficulties, it added.

China should continue optimizing its financial measures to bolster the real economy, especially focusing on inclusive loans for small and micro firms and private companies' bond issuance, to reduce SMEs' burdens, the organization proposed.

Editor: Emmi Laine, Xiao Yi