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Published on December 28, 2007

More sales and greater profits were credited with the increase.

Director-general Jhitraporn Techacharn said SMEs in the service sector, particularly hotels, guest houses and bungalows, exhibited the greatest confidence, thanks to an influx of foreign tourists resulting from a more stable political situation.

Confidence among hotels and other types of accommodation increased from 48 points in October to 51.5 last month. The tourism industry also felt more confident, with its index increasing from 42.5 points in October to 48 last month. And restaurant operators' confidence rose slightly, from 44.1 points to 45.6. Thanks to greater spending by consumers during this festive season, Osmep's Sentiment Index reported SME confidence in the wholesale and retail sectors was boosted from 40.3 points to 42.3 and from 42 points to 45.4, respectively.

Jhitraporn said although SMEs in almost every sector were more optimistic about the economy, their confidence remained at a low level, due to increasing production costs caused by rising oil prices and infrastructure service costs.

Although SMEs expressed greater confidence from more orders, their confidence about the country's economy declined, from 33.6 points to 32.7.

Jhitraporn said most operators believed the economy would show a brighter climate in next year's first quarter.

Osmep's survey indicated confidence should increase from 44.4 points last month to 48.8 next February.

The Nation