Philly Fed index stays above forecasts in February

Manufacturing activity in the US mid-Atlantic region continued to grow at a brisk pace in February, the results of a closely-watched survey revealed.

The Federal Reserve Bank of Philadelphia's factory sector index, which is derived from a survey, slipped from a reading of 26.5 in January to 23.1 for February (consensus: 19.8).

Nevertheless, the index remained at an elevated level and was in any case stronger than expected.

Key to February's dip was a retreat in the sub-index tracking delivery times from 30.0 to 15.1.

A sub-index for new orders also fell back, from 30.0 to 23.4, which was also still at a high level.

Price pressures also continued to pile up, as indicated by a pick up in the corresponding sub-index from 45.4 to 54.4 - although price increases typically always lag rising activity.

The length of the average work week also increased, as shown in the increase for that sub-index from 18.6 to 30.6.