The latest report by IHS Markit revealed on Tuesday the seasonally adjusted final IHS Markit U.S. Services Business Activity Index (PMI) stood at 26.7 in April, sharply down from 39.8 in March and fractionally lower than the previously published "flash" figure of 27.0. The latest reading pointed to steepest fall in business activity across the U.S. service sector on record.

Economists had forecast the index to stay unrevised at 27.0.

According to the report, business activity fell noticeably as client demand slumped and many businesses closed temporarily as the COVID-19 outbreak escalated and emergency public health measures intensified. New business contracted at the most severe rate since the series began in October 2009 and the fall in employment was the most marked in the series history and largely stemmed from excess capacity at service providers.