The latest report by IHS Markit revealed on Friday the seasonally adjusted final IHS Markit U.S. Services Business Activity Index (PMI) stood at 39.8 in March, sharply down from 49.4 in February but up from the earlier released "flash" figure of 39.1. Nonetheless, the latest reading pointed to the quickest decline in output since data collection began in October 2009.

The reading signaled the fastest business activity expansion across the U.S. service sector since April.

Economists had forecast the index to stay unrevised at 39.1.

According to the report, business activity fell markedly following a steep drop in new orders, largely stemming from the outbreak of COVID-19. New orders received by service providers fell at the sharpest rate since the survey began, as customer and business closures led to client cancellations. The pace of job shedding was the joint-fastest since December 2009, as firms stated that lower new business inflows resulted in redundancies and enforced hiring freezes.