The services sector expanded at its fastest pace in a year in February, helped by a gain in new orders and improvements in housing, according to data released today, Reuters reported.

The Institute for Supply Management (ISM) said its services index rose to 57.3 last month from 56.8 in January, besting economists’ expectations for a drop to 56.1.

It was the index’s highest level since February 2011 in the services sector that accounts for about two-thirds of U.S. economic activity. A reading above 50 indicates expansion for the index.

The gauge of new orders improved to 61.2 from 59.4, while the employment index slid to 55.7 from 57.4.

“It was overall a solid report,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets.

The ISM employment index declined, suggesting that employment growth in the sector slowed, Reuters said.

Friday’s official employment report is expected to show the economy added 210,000 jobs in February, down from a rise of 243,000 in January.

Also today, the U.S. Commerce Department said orders to U.S. factories decreased 1 percent in January, the first drop in three months, Bloomberg reported.