Confidence among operators of small and medium¬sized enterprises (SMEs) fell to a three¬year low in the third quarter on concerns over the lacklustre economy and still¬tepid purchasing power. At the same time, their expectations for the final three months of this year declined further, according to a quarterly survey by TMB Analytics, the research arm of TMB Bank. The TMB¬SME sentiment index surveyed 1,262 SMEs nationwide from July¬September and found their confidence had dipped to 34.2 points from 38.7 in the second quarter and 43.7 in the first quarter, said Benjarong Suwankiri, head of TMB Analytics. However, the survey was conducted mostly ahead of the new economic ministers taking the helm in late September, led by Deputy Prime Minister Somkid Jatusripitak. The sputtering economy and weak purchasing power was the biggest concern for SMEs at 63.9% of respondents, the highest since the index was first conducted three years ago, Mr Benjarong said. This was lower than 60.2% in the second quarter and 54.7% in the first quarter. Business and cash¬flow management was their second¬biggest concern due to tight liquidity from lower sales, while natural disasters were their third¬biggest worry, Mr Benjarong said. SME expectations for the final three months also dropped marginally to 53.1 points from 53.8 in the second quarter and 59.3 in the first quarter, plagued by lower revenue expectations. The reading remained above 50 points, which marks the threshold between optimism and pessimism. However, the survey detected deteriorating signs of expectations among SMEs in Greater Bangkok and the eastern region, while future sentiment among those in other regions improved. The expectations of SMEs in the East dipped to 49.8 points, falling below the 50-point threshold for the first time, while those of Greater Bangkok SMEs dropped to 54.6 from 56.2 in the second quarter. "Signs of improving SME expectations in the other regions are supported by the government's economic stimulus packages, particularly SME schemes," Mr Benjarong said. "Hopefully, the sentiment index will also improve in the fourth quarter after the government measures are implemented.