Tax cuts healing economy, Bush says

WASHINGTON - President Bush says increases in consumer spending and reports that manufacturing is on the mend are proof that his tax cuts have restarted the American economy, although the job market has yet to turn around.

"Now we must build on this progress and make sure that the economy creates enough new jobs for American workers," Bush said in a radio address Saturday that looked ahead to Labor Day and three trips he's taking this week to talk about his job-creation agenda.

Economic recovery in America is the theme of events this week in Ohio, Missouri and Indiana, three states important to his re-election.

The president returned to Washington on Saturday after a monthlong stay at his Texas ranch.

"As consumer spending rises, manufacturers are seeing more new orders for their goods," Bush said. "Low interest rates mean businesses have better balance sheets, and families have saved billions of dollars by refinancing their homes. These are the signs of a reviving economy."

Labor leaders acknowledge the positive signs, but they also point to the nation's 6.2 percent unemployment rate in July and the 2.7-million net jobs that have been lost in the economy since the recession began in March 2001.

Bush also used his radio address to push Congress to pass an energy plan and legal reform while spending less. "Congress must restrain government spending so that we can bring the deficit down by half within the next five years," he said.

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