China's small and medium-sized enterprises (SMEs) reported better business performances in October, with an industry index measuring their activity posting its largest increase of the year.

The Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs across eight major industries, reached 89 last month, 0.3 points higher than in September, according to a report from the China Association of Small and Medium Enterprises.

This growth rate marked the largest increase this year and the highest since March 2023, the association reported.

Sub-indexes saw overall improved performance last month. Driven by the implementation of supportive policies, the sub-index measuring SMEs' confidence in the macroeconomy rose to 98.8, up from 98.2 in the previous month.

The sub-index for industrial production maintained an upward trend, while those for construction, transportation, real estate, social services, accommodation, and catering sectors reversed the previous month's decline and showed expansion.

The index contains multiple sub-indexes to gauge the performances and expectations of SMEs. A reading above 100 reflects an upward trend in business, while a reading below 100 indicates dented vitality.