Service industries expanded at the fastest pace in a year in February, indicating that a pick up in the housing market is supporting the service industries, which make up about 90% of the economy. 

The housing recovery is driving sales at companies such as Hovnanian Enterprises  ($6.22 -0.21%), along with consumer purchases. 

The Institute for Supply Management's non-manufacturing index increased to 56 last month from 55.2 in January.