An index tracking the sentiment and performance of small- and medium-sized enterprises in China dropped in October, with firm heads saying the impact of a cooling economy was beginning to trickle down.
London-based bank Standard Chartered found that strains on sales and production were now exacerbating previous concerns of slowing demand and trade war threats, pushing down the headline reading from 55.6 in September to 54.5 last month. A reading of fifty indicates no growth in the sector.
The survey also should that investment and hiring by smaller firms was cooling, reflecting a less optimistic outlook for the economy’s near-term future. Many firms reported constraints from tighter financing conditions and expressed hopes for further stimulus measures from Beijing.