The industrial output rose for a third straight month in May but the recovery remains fragile with both exports and domestic consumption sluggish.
The Industry Ministry said on Thursday its manufacturing production index (MPI) in May rose 2.6% from a year earlier. A Reuters poll had forecast a rise of 1.85%.
In April, output rose a revised 0.89% from a year earlier, instead of the 1.54% reported a month earlier.
Industrial goods accounted for nearly 79% of total exports in May, which declined 4.4% from a year earlier, customs data showed. May's output increase was led by autos, air conditioners and rubber products.
Capacity utilisation was at 67.45% in May, up from April's revised 59.52%.
Exports have contracted in each of the past three years. The Bank of Thailand has forecast shipments will fall 2.5% this year, down from a 2% drop projected earlier, while it still expects the economy to grow 3.1%.