Reports Expected on Jobs, Manufacturing

U.S. businesses added workers and manufacturing expanded in April after the economy grew in the first quarter at the strongest pace in more than two years, reports this week are likely to show.

About 60,000 jobs were added this month after an increase of 58,000 in March, according to a survey of economists by Bloomberg News. The Labor Department’s report on Friday may show April’s rise in payrolls to be the biggest since February 2001, a month before the economy slipped into recession.

Manufacturing grew for a third straight month, the Institute for Supply Management is expected to report on Wednesday. Production is picking up to meet demand at a time when businesses have reduced inventories by record amounts.

A lack of pent-up consumer demand may limit economic growth later in the year after the first quarter’s 5.8% rate of expansion. A Commerce Department report today is expected to show that personal spending increased 0.4% in March, the smallest rise since December. Incomes probably increased 0.4%.

Statistics on Tuesday from the New York-based Conference Board are likely to reinforce expectations that consumers won’t increase their spending in coming months.

The group’s consumer confidence index is expected to show a decline to 107.5 in April from 110.2 in March, which was the highest since August. Sentiment probably receded during the month because of worries surrounding the crisis in the Middle East, higher energy costs and a sluggish stock market, economists said.

Other reports this week:

* Wednesday, the Commerce Department probably will report a 0.1% decline in March construction spending after a 1.1% surge in February.

* Friday, the Institute for Supply Management probably will report that service and other business excluding manufacturing expanded in April. The index of non-manufacturing activity probably held above the break-even point of 50.