July 30 (Bloomberg) — Companies added 218,000 workers in July, exceeding the average for the year and showing improving demand is bolstering the U.S. job market, a private payrolls report showed today.

The gain this month followed a 281,000 increase in June that was the strongest since November 2012, according to data from the ADP Research Institute in Roseland, New Jersey. The median forecast in a Bloomberg survey of economists called for a 230,000 advance in July.

Businesses are limiting dismissals and taking on more workers, spurring consumer confidence and laying the groundwork for a pickup in household spending that accounts for about 70 percent of the economy. A Labor Department report in two days is projected to show private payrolls climbed by 230,000 workers last month.

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