US economy beginning to improve Bush

WASHINGTON, Aug 31 (AP) President Bush said Saturday that Americans may have cause this Labour Day weekend to start worrying less about the nation's - and their families' - economic health.brThere have been some recent signs that our economy is beginning to improve, Bush said in his weekly radio address.brAmong the positive signs that Bush referenced was a report Thursday that the overall economy, as measured by the gross domestic product, rose by 3.3 per cent in the April-June quarter. This surprised analysts and was a significant rebound from growth of just 0.9 per cent in the first quarter of the year. Most credit was given to the $93 billion in economic stimulus payments the federal government has sent to households since May.brHowever, other economic news this week showed that right after that second quarter, in July, consumer spending slowed to a crawl and personal incomes plunged.brWith few stimulus payments still to go out, some economists worry consumer spending will continue to falter. Since it accounts for two-thirds of economic activity, that could send economic growth tumbling again in the second half of the year, particularly given rising unemployment, a continuing credit crisis and the deepest housing slump in decades.brDemocrats, including presidential nominee Barack Obama, are calling for the government to pass a second stimulus package to guard against that.brBut Bush has resisted, expressing concern about the impact on the budget deficit and insisting the rebate payments will continue to support the economy in coming months.brHe praised the impact of the current stimulus package in language that suggested he remains opposed to another.brThe economic stimulus package that I signed earlier this year is having its intended effect, the president said. Many Americans who received tax rebates are spending them. Businesses are taking advantage of tax incentives to purchase new equipment this year. And there are signs that the stimulus package will continue to have a beneficial impact on the economy in the second half of the year.brStill, despite his optimistic outlook, Bush took care to express sympathy with those grappling daily with pocketbook worries.brThere are families across our country struggling to make ends meet, he said. There is an understandable concern about the high price of gas and food. And many Americans are worried about the health of our housing and job markets. I share these concerns about our economy.brMeanwhile, falling gas prices might not be enough to entice people to travel this Labour Day weekend, with some keeping a wary eye on dangerous Hurricane Gustav, which is threatening the Gulf Coast.brAbout 34.4 million people are projected to travel at least 50 miles from home - a 1.1 per cent decline from Labor Day 2007. Travel over Memorial weekend and Independence Day 2008 was also down compared to last year, according to auto club AAA.brA lot of people may choose that they don't want to take a risk. They know how quickly weather can change and that may discourage a lot of travellers from traveling any distance this weekend, AAA spokesman Gregg Laskoski said Saturday.brTravel in the Southeast could be particularly low. AAA officials predict a decline of 0.6 per cent from last year.brAlabama tourism officials said the coast's 15,000 hotel rooms and condominiums dropped from about 80 per cent to 85 per cent booked to about 50 per cent to 60 per cent after forecasters said Gustav was heading to the Gulf of Mexico.brOn Florida's east coast, officials at popular tourist spots like Daytona Beach warned of dangerous rip currents, even though Gustav posed no immediate threat.brOn the state's west coast, beaches were packed. A strip along Panama City Beach was lined with traffic and vacationers enjoyed parasailing, and shopped idly at gift shops and sipped colorful drinks at tiki bars.brTaylor said they've already had dozens of evacuees check in as of Saturday afternoon.brShe said the hotel doesn't typically allow pets, but they would be making an exception for those fleeing Gustav.brWhile evacuees were arriving at Alabama beach resorts, Jacob Doucet said he and eight others were cutting short their Labour Day vacation to head back home to Lafayette, La, which is in Gustav's projected path.brGasoline in Florida, Georgia and Tennessee and most of the US remains at about $1 per gallon higher than at this time last year even though retail prices have steadily dropped since crude oil peaked in mid-July, according to AAA. Regular gas was averaging about $3.68 a gallon nationwide.