The vitality of China's small and medium-sized enterprises (SMEs) improved in the first quarter of the year as the economy further recovered from the impact of COVID-19, per the latest industry data. 

The Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs, increased by 0.5 points to 87.5 in the first quarter and hit its highest level since the same period of last year, according to the China Association of Small and Medium-sized Enterprises. 

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. 

The macro economy, financing, cost and labor force sub-indexes were all above 100 in the January-March period, during which business confidence among SMEs was further restored, market expectations continued to improve, and cash strains were eased, said the Association, citing China's pro-SME measures such as targeted monetary policies from the central bank that lowered financing pressures. 

China's medium-sized, small and micro enterprises made important contributions to the country's economic development during the 2014-2018 period, official data showed. 

Those enterprises employed around 233 million people, accounting for 79.4 percent of all enterprise employees nationwide, the report said. 

Total annual operating revenue of those enterprises stood at 188.2 trillion yuan (about $26.9 trillion) in 2018, accounting for 68.2 percent of that from all companies in the country.