The Institute for Supply Management released its manufacturing purchasing managers' index for the U.S. on Tuesday. The index rose to 49.5 in February from 48.2 in January. Analysts had expected the index to increase to 48.5.

A reading above 50 indicates expansion, below indicates contraction.

The increase was mainly driven by rises in production and employment. The production index increased to 52.8 in February from 50.2 in January, while the employment index was up to 48.5 from 45.9.

The new orders index remained unchanged at 51.5 in February.

The price index increased to 38.5 in February from 33.5 in January.