The latest report by IHS Markit revealed on Wednesday the seasonally adjusted IHS Markit final U.S. Manufacturing Purchasing Managers’ Index (PMI) stood at 49.8 in June, up from May’s reading of 39.8 and slightly higher than the earlier released “flash” reading of 49.6. The reading signaled only a fractional deterioration in U.S. manufacturing conditions as goods producers and their customers began to reopen amid looser restrictions following the outbreak of COVID-19.

Economists had forecast the index to stay unrevised at 49.6.

According to the report, the downward trend in production eased markedly in June as new orders stabilized amid reports of relative improvement in demand conditions. At the same time, employment across the manufacturing sector dropped for the fourth month running in June. However, the overall loss of jobs was considerably weaker than those seen in the prior two months. Optimism about the year ahead meanwhile revived considerably amid hopes of a sustained pick-up in client demand and an end to the pandemic.

Chris Williamson, Chief Business Economist at IHS Markit noted: “While the PMI currently points to a strong v-shaped recovery, concerns have risen that momentum could be lost if rising numbers of virus infections lead to renewed restrictions and cause demand to weaken again.”