BANGKOK, June 1 (Xinhua) -- Thailand's manufacturing sector continued to expand in May due to higher demand, but at a slower rate, a survey showed on Thursday.

The country's manufacturing purchasing managers' index (PMI) was recorded at 58.2 last month, down from the record high of 60.4 in April, indicating a strong expansion with the seventeenth straight month of growth, according to S&P Global.

A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below reflects contraction.

According to the survey, the expansion was attributed to improved demand conditions, while incoming new orders for manufactured goods rose at the second-fastest pace behind April's record.

Demand, notably from overseas clients, remained strong, supporting the manufacturing sector's expansion, while supply limitations continued to ease, assisting Thai producers in alleviating cost pressures, said Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence.

Despite that, "business confidence fell sharply in May amid lingering concerns over the economic and political outlook," Pan said.