Sept. 21 (Bloomberg) -- The U.S. economy will add jobs by the end of this year, said Dean Maki, chief U.S. economist at Barclays Capital Inc. in New York.

The unemployment rate will “peak slightly below 10 percent,” Maki said today in an interview on Bloomberg Radio. “We don’t think there’s a lot left to go.” In August, the rate reached a quarter-century high of 9.7 percent.

After losing jobs every month since December 2007, “payroll growth turns positive” within three months, Maki said. September, however, will show another net loss in non- farm payrolls, he said.

After expanding at a 3.5 percent annual rate this quarter, the economy will grow at a 4 percent pace in the fourth quarter and at a 5 percent rate at the start of 2010, Maki wrote in a research report issued Sept. 17. Maki previously forecast a 3 percent growth rate at the start of 2010.

The rebound in the economy is being driven by housing and consumer spending, Maki said today.

“Housing has turned in a durable way in our view” and “consumer spending is actually coming in stronger than we expected,” he said. In housing, “affordability has improved so dramatically” and “housing prices have fallen faster than incomes.”

Obama Stimulus

The Obama administration’s $787 billion economic stimulus plan and the “cash-for-clunkers” auto rebate program “are not the only sources of support,” Maki said. Additionally, “wage, salary and income growth turned positive in July,” he said.

In a report issued today, the Conference Board said the index of leading indicators rose for the fifth consecutive month, led by the stock market, consumer confidence and housing.

The LEI, a gauge of the economic outlook over the next three to six months, advanced 0.6 percent in August, according to the New York-based private research group. That marked the longest string of increases since 2004.

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To contact the reporters on this story: Vincent Del Giudice in Washington vdelgiudice@bloomberg.net; Thomas R. Keene in New York tkeene@bloomberg.net.

Last Updated: September 21, 2009 11:41 EDT