Chinese Small Business Sentiment Shows Signs of Improvement

Three of the four major sub-indexes — corporate sales, profit and financing — improved in the month, while inventory declined. Photo: Bloomberg

(Bloomberg) — Business conditions at some of China’s smaller companies showed signs of improvement in January as the economy gradually rebounds from damage induced by “zero Covid”.

The CKGSB Business Conditions Index — a gauge measuring sales, profits, the financing environment and inventory at private small businesses in China, rose to 49.7 in January from December’s 45.2, data provider Cheung Kong Graduate School of Business said in a release Thursday. The survey uses the same methodology as the PMI index, meaning a reading above 50 indicates expansion and one below 50 suggests contraction from the previous month.