AN index measuring the performance of small and medium-sized enterprises in China continued to climb in the first quarter amid strengthening economic recovery, data from an industry association have shown.

The SME development index and the profit index for the first quarter gained 4.4 points to 95.2 and 76.7, respectively, the China Association of Small and Medium Enterprises said.

The pickup came in line with China's economic growth, which has begun to show signs of recovery since the fourth quarter of last year after seeing its lowest growth pace in more than three years in the third quarter, expanding by 7.4 percent.

The sub-index for industrial firms, construction, transport, wholesale, social services, information and computers all rose in the first quarter.

Meanwhile, the sub-index for the real estate, hotel and catering sectors fell on China's renewed property controls and a call for frugality among government officials.

Despite the generally upbeat sentiment, the SMEs' performance may not see substantial improvements in the near future, as higher costs, financing difficulties and tepid market demand will continue to hit them, the association said in a statement.