Obama: US return to growth marks progress, but jobs lagging (Extra)

Oct 29, 2009, 15:32 GMT

Washington - US President Barack Obama on Thursday hailed the United States' return to growth as a sign of 'real progress' in reviving the world's largest economy, but said he would not be satisfied until there is a halt in job losses.

The Commerce Department earlier Thursday said US gross domestic product (GDP) grew at an annualized 3.5 per cent in the third quarter of 2009, surprising economists and marking the first positive quarter in a year.

Obama attributed the improvement to massive spending measures put in place by his administration since the start of the year.

'This is obviously welcome news and an affirmation that this recession is abating and the steps weve taken have made a difference,' Obama said, according to prepared remarks released from a speech he will give later Thursday in Washington.

'But I also know that we have a long way to go to fully restore our economy, and recover from what has been the longest and deepest downturn since the Great Depression,' Obama said.

The GDP estimate marked the culmination of months of positive news for the US economy, but difficulties still lie ahead. Unemployment stood at 9.8 per cent in September and is widely expected to hit 10 per cent in the coming year.

'While this report today represents real progress, the benchmark I use to measure the strength of our economy is not just whether our GDP is growing, but whether we are creating jobs, whether families are having an easier time paying their bills, whether our businesses are hiring and doing well,' Obama said.