China's small and medium-sized enterprises (SMEs) reported a slight decline in business activities in May, with the Small and Medium Enterprises Development Index down 0.2 points from the previous month, the latest industry data showed.

The index, calculated based on a survey of 3,000 SMEs in China, came in at 89.2 in last month. The reading was up from 88.9 registered in the same period last year, according to the China Association of Small and Medium Enterprises.

The index contains multiple sub-indexes to gauge the performance and expectations of SMEs. A reading below 100 indicates dented vitality.

Last month, the sub-indexes for labor force and business capital were above 100, while those for sentiment on the macroeconomy, overall business operation, market, investment and earning performance were below 100.

Development confidence and market expectations of China's SMEs were yet to be boosted, the association said. The survey showed that these enterprises were faced with falling demand and high operating costs last month.

The association called for consolidating and strengthening the sound economic recovery momentum, stressing the need to step up support for the real economy, expand domestic demand, and widen investment and financing channels for SMEs.

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