The latest report by IHS Markit revealed on Wednesday the seasonally adjusted final IHS Markit U.S. Services Business Activity Index (PMI) stood at 37.5 in May, up from a record low 26.7 in April and slightly higher than the “flash” figure of 36.9. The rate of contraction in activity softened considerably amid some reports of businesses returning to work, but was nonetheless the second-steepest since data collection began in October 2009.

Economists had forecast the index to stay unrevised at 36.9.

According to the report, the U.S. service providers indicated a further significant, albeit softer, contraction in business activity in May, as the impact of the COVID-19 continued to dampen client demand. At the same time, new order inflows declined at a slower rate than in April, despite domestic and foreign demand remaining subdued. Consequently, companies cut jobs at a considerable pace, and one that was only slightly slower than April's recent record. The reduction in employment partially stemmed from pessimism among firms towards the outlook for activity over the next year, as extreme levels of business uncertainty weighed on confidence.