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The IHS Markit flash composite PMI, which measures activity in services and manufacturing combined, rose from 27.0 in April to 36.4 in May according to the latest IHS report. The services PMI rose from 26.7 to 36.9, and the manufacturing PMI rose from 36.1 to 39.8. Overall, the report indicates that the private sector contracted at a slower rate in May with the reopening of some parts of the US economy.

Another 2.44 million Americans applied for jobless benefits last week, more or less in line with market forecasts. 38.6 million people have applied for benefits since the escalation of the coronavirus pandemic in March. While the claims numbers are unprecedented in pre-pandemic times, last week marks the seventh week of consecutive decline from the peak of 6.9 million claims seen in late March.

The manufacturing industry has sunk further as a result of the coronavirus pandemic according to the latest report from the Philadelphia Federal Reserve. The Philadelphia Fed manufacturing index came in at -43.1 vs. - 47.5 expected for May following a reading of -56.6 the month before when the index hit a 40-year low. While business conditions have improved slightly, the pace of recovery is below market expectations.

Homebuilding in the US fell to the lowest rate in 5 years, according to the housing report released on Thursday by the Commerce Department.  April housing starts plummeted 30.2% to a seasonally adjusted annual rate of 891,000 last month, the lowest level since 2015. Annually, housing starts fell 29.7%, with declines seen in all four regions.

The University of Michigan (UoM) consumer sentiment index came in at 73.7, beating expectations of 65 for May and above the 71.8 reading seen in April. Chief economist for the survey, Richard Curtin, echoed commentary supporting the government stimulus packages which have helped cushion some of the damage from the coronavirus pandemic.

New York manufacturing activity in May recovered slightly from the stunning low seen the month before, which was twice as bad as the worst reading during the Great Recession. The index came in at -48.5 in May vs. -78.2 the month before, remaining deeply contracted. The latest reading was still far worse than the historic drop of the Great Recession, marking the second worst month in recorded history, and employment in manufacturing fell further.