According to TMB Analytics, Thailand’s SME confidence index in the first quarter of this year has dropped to a new low due to the ongoing political crisis.

TMB Analytics said that the index plummeted to 37.6 points, down from 40.9 points in the previous quarter, which is the lowest figure since 2012.

The confidence index inclusive of trade and service sectors for the next three months is projected to decrease to 51.1 from 58.4, as the outlook for the economy continues to be bleak.

The confidence level of SMEs in Bangkok and its vicinity are the lowest on the list, as most business operators have been directly affected by the ongoing turmoil. Meanwhile, SME operators in the South are also have low confidence levels, as the price of rubber is on the decline.

Two factors that contribute to the low SME confidence is the country’s political unrest, followed by economic growth. Nonetheless, some SME operators have become gradually less concerned over the country’s politics.

The Federation of Thai Industries (FTI) earlier warned that at least 100,000 SMEs will be forced to shut down if the ongoing political turmoil prolongs until the end of this year.