Obama seeks right tone on economy

WASHINGTON -- Bullish yet wary, President Barack Obama is highlighting recent economic bright spots while taking care not to overstate a recovery that has still left millions out of work.

His Republican rivals, in the face of late-arriving economic good news, are making slight adjustments themselves, arguing that Obama's policies have been a drag on a recovery that could have taken hold sooner.

The competing rhetoric reflects the positive indicators in areas ranging from retail sales and housing to unemployment and falling gas prices. All this has pushed up consumer confidence, a potential barometer of political attitudes. Even Congress and Obama managed to agree on a two-month payroll tax cut extension before leaving Washington for the holidays.

But the economic signs could prove fleeting, as they were in the early spring when economists also detected upticks in activity only to watch them tumble. These new indicators may hold more promise. But a looming European debt crisis is casting a pall.

No one is more aware of that risk than Obama.

"We've got an economy that is showing some positive signs. We've seen many consecutive months of private sector job growth," Obama said before departing for Christmas in Hawaii. "But it's not happening as fast as it needs to."

For Obama, the danger is in promoting an economy that while, slowly recovering, has yet to reflect reality for millions of Americans, or in highlighting positive signs only to see them falter in 2012.