The Philadelphia Federal Reserve Bank released its manufacturing index on Thursday. The index climbed to -2.8 in February from -3.5 in January, exceeding expectations for an increase to -3.0.

A reading above zero indicates expansion, while a reading below zero indicates contraction.

"Firms responding to the Manufacturing Business Outlook Survey reported continued weakness in business conditions this month. The indicator for general activity remained slightly negative this month, edging up only marginally from its reading in January," the Philadelphia Federal Reserve Bank said in its survey.

The shipments index was down to 2.5 in February from 9.6 in January.

The new orders index decreased to -5.3 in February from -1.4 in January.

The prices paid index fell to -2.2 in February from -1.1 in January, while the prices received index slid to -4.5 from -2.8.

The number of employees index dropped to -5.0 in February from -1.9 in January.

According to the report, the future general activity index slid to 17.3 in February from 19.1 in January.