Central Atlantic mills activity contracts for the first time since May 2016

Charles Mostoller | Bloomberg | Getty Images

Patrick Harker, President of the Federal Reserve Bank of Philadelphia.

The activity of US mills in the central US coast fell into the doldrums of contraction in February for the first time since May 2016, amid trade tensions between China and the United States, revealed data released Thursday by the Federal Reserve of Philadelphia.

The regional central bank said its index of activity had deteriorated from 17.0 to 17.1 in January. The negative reading was well below the economists' forecast of 14.0, according to a Reuters poll. The decrease is the biggest monthly decline since August 2011.

"Manufacturing conditions in the region have deteriorated this month," the Philadelphia Fed said in light of the latest data.

Any reading below zero indicates a contraction in the manufacturing sector in the region.

The Philadelphia Fed survey covers the manufacturing industries of eastern Pennsylvania, southern New Jersey and Delaware.

The newspaper order survey component fell to -2.4, the lowest since May 2016, after 21.3 in January.

The monthly drop in activity in new regional orders was the strongest since October 2008, at the height of the global credit crisis.

Central Atlantic shipments also fell in negative territory, from 11.4 the previous month to -5.3%.

In contrast, the survey employment barometer rose from 9.6 to 14.5.

The six-month trading activity index remained stable at 31.3 compared with 31.2 in January, while the six-month capital investment index was little changed at 31.7 from 31.6.