Stronger demand, including a boost in export orders, helped Thailand's factories expand in May, reported S&P Global on Wednesday.

Thailand's manufacturing purchasing managers index (PMI) rose to 51.2 in May, up from 49.5 in April, and striking above the 50-mark that separates growth from contraction, reported S&P Global on Wednesday.

"Rising new business, supported by renewed growth in export orders, contributed to a solid rise in production," said S&P Global.

Factory managers cited greater marketing efforts, the launch of new products and rising international interest as reasons for the improvement in demand, reported S&P Global.

Thailand manufacturers added to payrolls in May, to meet demand and also whittle down back orders, said S&P Global.

In addition, "forward-looking indicators hint at further growth in output" in the months ahead, added S&P Global.

With orders strong, Thailand's manufacturers in May were relatively confident in 12-month outlooks. "Sentiment in the Thai manufacturing sector was positive midway through the second quarter of the year. Despite falling to a five-month low, the level of confidence remained elevated and above the series average," reported S&P Global.

Despite the positive May manufacturing report from S&P Global, recent forecasts for the nation's economy in 2025 have been tempered.

Thailand's gross domestic product (GDP) was forecast to expand by 2% on year in 2025 by the Organization for Economic Co-operation and Development (OECD), in a report released on Tuesday. The OECD cited trade tensions for a revised set of more modest global and national GDP forecasts for 2025.

The May Thailand manufacturing PMI was compiled by S&P Global from surveys sent to 400 manufacturers from May 12 through May 21.