The latest report by IHS Markit revealed on Wednesday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers' Index (PMI) stood at 48.5 in March, down from 50.7 in February and down from the earlier released "flash" figure of 49.2. The reading pointed to the worst contraction in the manufacturing sector since August 2009.

Economists had forecast the index to stay unrevised at 49.2.

According to the report, the decline in headline indicator was driven by downturns in output and new orders, which contracted at the fastest rates since the financial crisis in 2009 amid weak domestic and foreign demand conditions following the outbreak of COVID-19. In addition, employment decreased at the quickest pace since October 2009.