China's Small and Medium Enterprises Development Index (SMEDI) edged up by 0.2 to 89.1 in June from the previous month, ending three consecutive months of decline as the country's policies to promote economic recovery continue to take effect, China Association of Small and Medium Enterprises (CASME) said on Monday.

Out of the eight sub-indexes surveyed under the SMEDI, six of them recorded higher results in June compared to May. Both the market index and overall input index climbed 0.4 point month on month, the highest increase among the sub-indexes, reflecting an improvement in market expectations.

From the industry perspective, five out of the eight sectors monitored saw growth in June. The construction sector led with a 0.4-point increase, followed by the industrial sector which was up 0.3 point.

In view of the economic situation, it's necessary for China to roll out more effective measures to strengthen growth momentum, optimize the economic structure, and promote sustained economic recovery, according to the CASME. 

China should strive to expand effective demand, provide new growth drivers to enterprises and reduce their costs, promote transformation and upgrading, as well as high-quality development of the small and medium-sized enterprises, said the association.