The U.S. service sector expanded at a faster pace than expected in April after hitting a four-year low in March, the New York Times reported Friday.

The Institute for Supply Management's non-manufacturing index, a measure of the largest sector of the economy, rose to 56.0 in April, from 52.4 in March, according to a survey released Thursday by the trade group. That beat expectations for a reading of 53.0.

A reading above 50 in the ISM index indicates expansion while a reading below 50 signals contraction. April represents the 49th consecutive month of growth in the service sector.

Analysts had been expecting a figure of 54 for April.

The service sector -- everything from restaurants and hotels to banks and airlines -- represents about 80 percent of economic activity in the United States.

The ISM's non-manufacturing new orders index was 55 in April, up from 53.8 in March. The employment index registered 51.9, slightly higher than March's reading of 50.8.

Order backlog index, meanwhile, declined to 50 from 52.5 in March.

The ISM index for non-manufacturing sector was a good number for the economy, Gary Thayer, chief economist at A.G. Edwards & Sons in St. Louis, was quoted as saying by the newspaper.

"It means the Fed is probably going to stay on hold for a while, " Thayer added.

The Tempe, Ariz.-based ISM is a trade association representing approximately 40,000 supply management professionals.