Gains in payrolls show US job market improving

WASHINGTON, Mar 27 (Bloomberg): Employment probably picked up in March and factory assembly lines kept humming, showing that the jump in fuel costs has yet to hamper the US expansion, economists said before reports this week. Payrolls increased by 195,000 workers this month, the most since May, after a 192,000 advance in February, according to the median forecast of 62 economists surveyed by Bloomberg News ahead of Labor Department data April 1. A survey of purchasing managers the same day may show that manufacturing grew at close to the fastest pace in seven years. Record exports, along with gains in business and consumer spending, are prompting such companies as General Motors Co to boost staff, helping the US weather the highest energy prices in more than two years. The improving economy encouraged Federal Reserve policy makers this month to signal that they are unlikely to expand bond purchases once the current program ends in June. "We're gathering strength as we move along," said Kurt Karl, chief economist at Swiss Re in New York. "Job gains have moved up." Nonetheless, he said, "given the depth of the downturn, this is a pretty moderate recovery."