Download → Entrepreneur Survey Report (Q2 2023).pdf

The results of the entrepreneur survey conducted by the People's Bank of China (PBOC) in Q2.

I. Entrepreneur Macroeconomic Heat Index

The entrepreneur macroeconomic heat index registered 30.9 percent, decreasing 3.0 percentage points quarter-on-quarter (q-o-q), and increasing 4.3 percentage points year-on-year (y-o-y). Among the entrepreneurs surveyed, 39.2 percent considered the macroeconomic climate “relatively cold”, 59.9 percent regarded it as “normal”, and 0.9 percent regarded it as “relatively overheated”.

II. Product Selling Price Sentiment Index and Raw Material Purchasing Price Sentiment Index

The product selling price sentiment index posted 43.1 percent, decreasing 4.7 percentage points q-o-q, and decreasing 9.3 percentage points y-o-y. Compared with the previous quarter, 7.8 percent of the entrepreneurs surveyed considered the current product selling while 70.6 percent and 21.6 percent considered it “ unchanged ” and “ decreased ” respectively.

The raw material purchasing price sentiment index reached 50.5 percent, decreasing 7.5 percentage points q-o-q and 17.6 percentage points y-o-y. Compared with the previous quarter, 16.0 percent of the entrepreneurs surveyed considered the raw material purchasing price “ increased ” , while 69.0 percent and 15.0 percent considered it “unchanged” and “decreased” respectively.

III. Export Order Index and Domestic Order Index 

The export order index was 45.5 percent, increasing 6.0 percentage points q-o-q, and increasing 4.5 percentage points y-o-y. Compared with the previous quarter, 19.4 percent of the entrepreneurs surveyed considered the number of export orders “ increased ” , 52.1 percent considered it “ unchanged ” , and 28.5 percent considered it “decreased”.

The domestic order index posted 48.2 percent, increasing 5.3 percentage points q-o-q, and increasing 7.3 percentage points y-o-y. Compared with the previous quarter, 20.0 percent of the entrepreneurs surveyed considered the number of domestic orders “ increased ” , 56.5 percent considered it “ unchanged ” , and 23.6 percent considered it “decreased”.

IV. Fund Turnover Index and Sales Revenue Collection Index

The fund turnover index was 59.3 percent, decreasing 0.7 percentage points q-o-q, and increasing 1.6 percentage points y-o-y. Among the entrepreneurs surveyed, 31.9 percent considered the performance of fund turnover in the current quarter to be “ good ” , 54.7 percent considered it “mediocre”, and 13.4 percent considered it “poor”.

The sales revenue collection index registered 61.9 percent, decreasing 0.3 percentage points q-o-q and increasing 2.0 percentage points y-o-y. Among the entrepreneurs surveyed, 32.1 percent considered the collection of sales revenue to be “easy”, 59.5 percent considered it “mediocre”, and 8.4 percent considered it “difficult”.

V. Business Climate Index and Profitability Index

The business climate index posted 49.6 percent, increasing 0.4 percentage points q-o-q and increasing 1.0 percentage points y-o-y. Among the entrepreneurs surveyed, 16.3 percent considered their business performance in the current quarter to be “relatively good”, 66.7 percent considered it “ mediocre ” , and 17.0 percent considered it “relatively poor".

The profitability index registered 53.2 percent, increasing 5.4 percentage points q-o-q, and increasing 2.0 percentage points y-o-y. Compared with the previous quarter, 32.8 percent of the entrepreneurs surveyed stated “profits increased or losses reduced”, 40.9 percent considered that “profits and losses remained unchanged”, and 26.4 percent said that “losses increased or profits increased or losses reduced”, 40.9 percent considered that “profits and losses remained unchanged”, and 26.4 percent said that “losses increased or profits declined”.