The latest report by IHS Markit revealed on Monday the seasonally adjusted final IHS Markit U.S. Services Business Activity Index (PMI) stood at 47.9 in June, up significantly from 37.5 in May and higher than the “flash” figure of 46.7. This was the highest reading since February and signaled a notably softer rate of the contraction in business activity across the U.S. service sector as many companies began to reopen following the easing of COVID-19 restrictions.

Economists had forecast the index to stay unrevised at 46.7.

According to the report, New business inflows meanwhile broadly stabilized in June, following three successive monthly contractions, while export sales rose for the first time so far in 2020. At the same time, the rate of job shedding softened markedly, while excess capacity eased as backlogs fell only fractionally as firms processed unfinished business upon the resumption of operations. O the price front, inflationary pressure returned as both input prices and output charges rose for the first time since February, with both increasing at solid rates.