Reports Expected to Show Manufacturing Expanded

Edited from reports from Bloomberg News

The Institute for Supply Management's manufacturing index, expected on Dec. 1, and the Labor Department's job report expected on Dec. 2 will show that U.S. job growth accelerated and manufacturing expanded, economists say.

The Institute for Supply Management's November manufacturing index is forecast at 58, above the 50-point line indicating growth. Last year’s average at this time was 55.4.  

A Bloomberg survey showed that the economy created 215,000 jobs in November compared with 56,000 in October. Employers probably added almost four times as many workers in November as in the prior month, the survey reported. 

Based on the speculation that these reports will show U.S. job growth, the dollar reached a 27-month high versus the yen. At 9:31 a.m. on Nov. 28 in New York the dollar rose to 119.74 against the yen from 119.63 late on Nov. 25, according to electronic foreign-exchange dealing system EBS. It earlier climbed as high as 119.94 yen, the strongest since Aug. 6, 2003. The U.S. currency traded at $1.1727 per euro, from $1.1726

The U.S. currency is headed for its first annual gain against the yen since 2001 as accelerating U.S. economic growth prompted the Federal Reserve to raise its benchmark interest rate seven times, to 4 percent.

``The dollar looks in a good position,'' said Tim Fox, a currency strategist at Dresdner Kleinwort Wasserstein in London. ``We're looking for relatively strong numbers this week, and any evidence of employment pressures and strong growth will give the Fed reason to continue raising rates.''