NEW YORK - Hopes for the fledgling economic recovery got a boost Monday from better-than-expected news on manufacturing, construction and contracts to buy homes.

U.S. manufacturing activity grew in October at the fastest pace in more than three years, according to a private group's measure. It was driven by government spending, businesses' need to rebuild inventories and higher demand from overseas.

The Commerce Department said construction spending rose in September on the strength of home building. The report supported optimism that the ailing housing sector is starting to revive.

The number of signed contracts to buy previously occupied homes rose for the eighth straight month in September, according to the National Association of Realtors.

Still, President Barack Obama said the public and private sectors must find more ways to create jobs to continue the recovery. In remarks at the start of a White House meeting with economic advisers, Obama credited his stimulus package for recent upticks in economic numbers, including the manufacturing boost reported Monday.

The president said there's still "a long way to go," especially in job creation. "We are still seeing production levels that are significantly below peak levels and most distressing is the fact that job growth continues to lag."

The trio of positive reports about areas of the economy that could help power a recovery did drive Wall Street higher in afternoon trading. The Dow Jones industrials rose about 65 points, and broader indexes also rose.

Still, with jobs scarce, lending tight and consumers wary of spending, it's unclear whether the strength can be sustained as government stimulus programs wind down.