Stronger job growth in the U.S. will make it easier to sustain the recent gain in consumer spending, which accounts for about 70 percent of the economy.

"Things are getting better for the economy," said Robert Brusca, chief economist at Fact & Opinion Economics in New York, who projected an ADP payroll gain of 160,000. "It means the news we have on Christmas shopping and on an increase in consumer confidence may have some validity."

Online sales increased more than 20 percent on Cyber Monday from a year earlier as consumers flocked to the Internet to make holiday purchases, researchers found. Revenue jumped 33 percent, according to International Business Machines Corp., while ComScore Inc. put the increase at 22 percent.

Williams-Sonoma Inc., a retailer of high-end home goods, raised its annual profit forecast and will "continue to look for a few key jobs" in online sales, Chief Executive Officer Laura Alber said in a Nov. 17 conference call with analysts.

Industrial Production

A pickup in consumer spending and more business investment at a time when companies are holding fewer inventories may help set the stage for stronger production.

Readings above 50 in the Chicago purchasers' measure signal growth and this month's figure exceeded the highest estimate in the Bloomberg survey. Economists forecast the gauge would rise to 58.5, according to the median of 56 estimates. Projections ranged from 56 to 60.7.

The Chicago group's production gauge increased to a seven- month high and the gauge of new orders rose to the highest level since March. The employment measure eased.

Economists watch the Chicago index and other regional manufacturing reports for an early reading on the national outlook. The Chicago group says its membership includes both manufacturers and service providers with operations in the U.S. and abroad, making the gauge a measure of overall growth.

The ISM's national factory index climbed in November to 51.8 from 50.8 the prior month, according to the median projection in a Bloomberg survey ahead of the group's report tomorrow. Like the Chicago survey, a reading greater than 50 signals expansion.

Caterpillar Inc.