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Obama 'guardedly optimistic' about economy

(Agencies)
Updated: 2009-08-01 01:58

WASHINGTON: US President Barack Obama said on Friday he was "guardedly optimistic" about the direction of the US economy after GDP figures showed the economy shrank modestly in the second quarter.

"Today's GDP is an important sign that the economy is headed in the right direction and that business investment, which had been plummeting in the last several months, is showing signs of stabilizing," Obama told reporters at the White House.

Obama said his administration was doing everything possible to continue a cash-for-clunkers program that allows people to get rebates for trading in gas-guzzling cars for more fuel efficient vehicles.