(Reuters) - Factory activity in the Mid-Atlantic region bounced back in July, lifting hopes of a pick-up in economic growth in the third quarter.

However, a rise in the number of Americans filing new claims for unemployment benefits suggested the reacceleration in output would not be as strong as had previously anticipated.

The Philadelphia Federal Reserve Bank said its business activity index rose to 3.2 from minus 7.7 in June, which was the lowest since July 2009. The rise beat economists' expectations for a reading of 2.0.

A reading above zero indicates expansion in the region's manufacturing.

"It does lend support to the view that the economy, or at least the industrial sector, may be pulling out of its recent soft patch," said Peter Buchanan, an economist at CIBC World Markets in Toronto.

Separately, initial claims for state unemployment benefits increased 10,000 to 418,000, the Labor Department said, above economists' expectations for a rise to 410,000.

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