The Federal Reserve Bank of Philadelphia said on Thursday its index of business conditions in the U.S. Mid-Atlantic region rose in February to 10.2 from 7.3 in January.

"One thing to note in contrast to what we saw yesterday in the Empire State manufacturing index is that the key forward elements in Philly Fed are actually increasing momentum," said Lindsey Piegza, an economist at FTN Financial.

The pace of factory activity in the U.S. Mid-Atlantic region gained momentum in February as new orders picked up.

Following the release, U.S. stocks maintained slight earlier gains while U.S. Treasury debt prices retained slight earlier losses. The dollar held onto its gains versus the euro.

"The survey indicated regional manufacturing activity continued to grow in February," said Michael Trebing, an analyst at the Federal Reserve Bank of Philadelphia.

"New shipments and orders were all positive and suggested a slight pickup from last month. Firms reported higher work hours. One fifth of the firms continue to report higher prices for their own manufactured good."