The headline index measuring current business conditions came in at 58.8 in the month, up from 56 in January. The six-month outlook index rose from 60 to 64, the report said.
The manufacturing index for the city "has been on a steadily improving path since last May, with October's hiccup from Hurricane Sandy the noticeable blemish," the institute said.
The index for the number of employees dropped from 53.1 to 49.3, a nine-month low, the report said. The revenues index, however, rose sharply from 62 in January to 68 in February.
The index uses 50 as the dividing line between growth and contraction -- numbers above 50 indicating expansion in the month.
Notable deaths of 2014 [PHOTOS]
GM recalls 221,000 Cadillacs and Impalas