Barclays now see Dec U.S. rate hike after jobs data

NEW YORK (Reuters) - Barclays economists on Friday revised their forecast of a U.S. interest rate increase to December from an earlier projection of such a move from the Federal Reserve in March 2016 in the aftermath of a robust U.S. October payrolls report.

The Labor Department said on Friday nonfarm payrolls increased 271,000 last month, the largest rise since December 2014 and much stronger than the 180,000 gain forecast among economists polled by Reuters.

"The October payroll report was very solid and exhibited broad-based strength. It suggests that labor markets have fully rebounded after slowing in August and September," Barclays' U.S. economists Michael Gapen and Rob Martin wrote in a research note.

They expected the U.S. central bank to raise its target range on the federal funds rate at its Dec. 15-16 meeting to 0.25-0.50 percent from the current zero to 0.25 percent.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

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