The Manufacturing Business Outlook Survey, released by the Federal Reserve Bank of Philadelphia on Thursday, revealed the expansion in the region's manufacturing activity accelerated in February.

According to the survey, the diffusion index for current general activity climbed from 17.0 in January to 36.7 this month. That was the highest reading since February 2017.

Economists had forecast the index to decrease to 12.0.

A reading above 0 signals expansion, while a reading below 0 indicates contraction.

According to the report, the indexes for new orders (+15 points to 33.6, its highest reading since May 2018) and shipments (+2 point to 25.2) rose this month, suggesting more widespread growth. Meanwhile, employment (-10 points to 9.8) increased at a moderated pace from January. Elsewhere, both the unfilled orders (+11 points to 7.4) and delivery times (+3 points to 2.7) indexes moved into positive territory this month, suggesting slightly higher unfilled orders and slower delivery times. On the price front, prices paid index decreased 6 points to 16.4, while prices received index rose 2 points to 17.1