BEIJING - China's small and medium-sized enterprises (SMEs) saw improved business performances in the first three months of the year, according to a report from the China Association of Small and Medium Enterprises released on Thursday.

The Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs across eight major industries, stood at 89.5 in the first quarter, 0.5 points higher than the previous quarter, the association said.

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The improved index was driven by booming holiday consumption and strengthened policy support, the association added.

In terms of sectors, the sub-indexes for industry, social services, transport, wholesale and retail, and information transmission software all expanded compared with the previous quarter, while the sub-index for the construction industry remained flat. The sub-indexes for the real estate and accommodation and catering sectors, meanwhile, continued to decline.

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The association called for efforts to expand demand, boost consumption and fully harness the enthusiasm of private capital, and emphasized the importance of developing new growth drivers.