The U.S. services sector grew in March at its fastest pace in nearly four years, according to an industry report released today.

The Institute for Supply Management (ISM) said its services index jumped to 55.4, its strongest reading since May 2006, from 53 in February, Reuters and CNBC reported.

The index recorded its third consecutive monthly gain and was above the 54 median forecast of 70 economists surveyed by Reuters.

A reading above 50 indicates expansion in the sector.

The report’s business activity index hit 60 in March, its highest level since April 2006, compared with 54.8 in February.

The employment index edged up to 49.8 from 48.6 while new orders jumped to 62.3 from 55.

“The better-than-expected ISM number is a consistent follow-on of the manufacturing report, which was strong, and the employment report, which suggests we have more people working longer hours,” said Alan Gayle, senior investment strategist at RidgeWorth Investments. “All this suggests that the economic recovery is spilling over into job creation.”

The services sector, which accounts for the majority of U.S. employment, has been slow to move back into expansionary territory, because of a weak labor market that has caused consumers to be a bit more cautious with their credit cards.