SME confidence drops in Q3

The confidence index dropped from 38.7 points in the second quarter to 34.2 points.

Benjarong Suwankiri, chief economist of the bank, said SMEs in the North and the East experienced the sharpest drop in revenue. The North experienced drought and wildfires which pressured the purchasing power in the region. In the East which is the country's largest  industrial base, the economy suffered from a continued decline in exports, leading to layoffs and delays in investment.

"The survey shows that top of the operators' concerns was the overall economic condition and weak purchasing power. Coming second is their concerns in liquidity following slow sales. Next is the concern in natural disasters, as drought directly hits the agricultural sector which contributes significantly to rural economy," Benjarong said.

SMEs in some regions expect the government's economic stimulus measures to improve the economic condition next year. Benjarong noted that though the tourism industry is expected to continue buoyant next year, benefits would be concentrated in key tourism destinations. 

The government's measures remain necessary to boost domestic purchasing power, Benjarong said.