Confused picture keeps confidence low

An Osmep survey reported that SME confidence would drop from 47.4 to 46.4 points in the next three months, particularly in the wholesale and retail sectors, while confidence in services would increase slightly from 47.9 to 48.1 points.

Due to negative economic factors such as the increase in the oil price, SME confidence declined from 45 points in the fourth quarter last year to 44.1 points last quarter.

Osmep director-general Jhitraporn Techacharn said SME operators had low confidence in their businesses due to the country's economic slowdown and concerns about rising production and raw-material costs.

However, the Osmep survey showed that SME confidence in March was 44.6 points, up from 42.5 points in the previous month thanks to higher spending by consumers before the Songkran festival and school holidays. She said SME confidence in March had increased in all sectors, particularly consumer products, retail sales and transport services.

Wholesale confidence surging from 39.3 points to 45.4 points in March showed the most confidence in the trading sector.

Meanwhile, confidence in transport businesses rose from 40.9 to 47 points, while the average confidence in the service sector increased from 43.9 to 44.8 points.