NEW YORK (CNN/Money) - The number of Americans filing for unemployment assistance fell by 11,000 last week, the government reported Thursday, coming in below economists' estimates.

Initial claims for unemployment insurance totaled 339,000 in the week ended July 16, the Labor Department reported, down from an upwardly revised 350,000 a week earlier.

Wall Street expected claims to come in at 345,000, according to Briefing.com.

The four-week average, which smoothes out weekly fluctuations in the jobless claims, fell to 336,750, down from 339,250 the prior week.

The number of people who already received a week of benefits fell by 167,000 to 2.80 million in the week ended July 10, the latest period for which the figures were available. That was the lowest since 2.78 million in the week ended May 12, 2001, and largest weekly decline since 212,000 in the Nov. 24, 2001 week.

Jobless claims figures have been in flux over the past few weeks as regularly scheduled auto plant shutdowns have skewed the figures. In the week ended July 16, more than 28,000 people filed for initial claims in Michigan, almost three times more than any other state.

Following the report, equity futures fell into negative territory and bond prices inched lower.

The drop in the four-week average may hint at a pickup in employment after U.S. companies added a disappointing 112,000 jobs in June following strong reports in April and May.

A resurgence in the job market could point to an acceleration in inflation, which Federal Reserve Chairman Alan Greenspan vowed this week to ward off by rising interest rates.