The number of Americans making new claims for unemployment benefits dropped below the 400,000 level last week for the first time since early April, Reuters reported. It’s seen as a hopeful sign for the economy, which has struggled to regain momentum.

Initial claims for state unemployment benefits dropped by 24,000 to 398,000, the U.S. Department of Labor said today. Economists had forecast claims falling to 415,000.

The drop in unemployment claims last week below the 400,000 mark that is normally associated with a stable labor market will be welcome news for the economy after recent weak data.

“What we’re seeing is that the claims levels are returning to their more normal level, which is in the positive direction,” said Patrick O’Keefe, director of economic research at J.H. Cohn LLP, in an interview with Reuters.

An uncertain economic outlook, further clouded by deadlocked talks to raise the nation’s borrowing limit and avoid a damaging debt default and credit rating downgrade, could slow progress in the labor market.

The government is expected to report on Friday that the economy grew at a 1.8 percent annual rate, after a tepid 1.9 percent rate in the first three months of the year.