New claims for jobless benefits in the US fell last week and factory activity picked up in early July.
The developments are being interpreted as signs of a stronger economy that could help push the Federal Reserve to ease its monetary stimulus.
The data bolsters the view that economic growth could pick up after a poor first half of the year in which consumers were hit by tax hikes and deep cuts in the federal budget.
Fed Chairman Ben Bernanke expects the economy will gather enough steam by the end of the year for the Fed to begin scaling back a bond-purchase program it has used to push down borrowing costs.
Today's data appeared to support that case.
Drop in jobless claims
The US Labor Department said initial claims for state unemployment benefits dropped by 24,000 to a seasonally adjusted 334,000.
It was the lowest reading since March and a steeper fall than analysts had expected.
The drop in new claims was the latest data to point to resilience in the jobs market.
