MOOSIC, Sept 3: President George Bush on Friday seized on monthly job creation figures to proclaim his tax-cut-driven economic policies a success as he courts US voters in battleground states.

Fresh from his acceptance speech at the Republican National Convention, Bush told thousands of supporters in a sun-drenched baseball stadium here: "We're making good progress in this country and we're not turning back.

"This morning we received (the) jobs report for August, and it shows that our economy is strong and getting stronger," Bush said. The economy is considered one of Bush campaign's weakspots, which can be exploited by Democratic rival John Kerry.

"I believe in the spirit and innovative power of the American worker, and that is why we unleashed the energy of our economy with the largest tax relief in decades," Bush said. "Because we acted, our economy is growing again."

The Labour Department reported that the US economy generated 144,000 jobs in August, in a sign that the labour market was improving slightly after two sluggish months.

The unemployment rate fell by a tenth of a percentage point to 5.4 percent, the lowest rate since October 2001, but Bush needs many more new jobs to post a net gain since he took office three and a half years ago.

"Our growing economy is spreading prosperity and opportunity, and nothing will hold us back," said the president. Bush was to visit four states Friday in a bid to milk his Republican Party's convention for an edge over Kerry as the two stormed up-for-grabs states in the final stretch of their race.

Three of the four - Pennsylvania, Wisconsin and Iowa - went for Bush's opponent in 2000. Bush carried the fourth, Ohio, which is considered a must-win if the president is to enjoy another four years in the White House.

Recent national polls taken before Bush's Republican Party held its four-day rally in New York showed the president and his challenger locked in a neck-and-neck race that will be decided by a handful of up-for-grabs states.

Kerry, who staged a midnight rally in Ohio, assailed Bush's economic record: "If you believe lost jobs mean that America is heading in the right direction, you should support George Bush and his policies of failure," he said in a statement.

"But if you believe America needs to move in a new direction, join with us. I will set a new course with an economic plan that will create jobs and put middle-class families first," the Democrat said.

Bush told thousands of hand-picked supporters here that, "with your help, your state of Pennsylvania will be a significant reason we are re-elected for four more years."

"I'm asking you to register your friends and neighbours to vote, register Republicans, register independents, register discerning Democrats," the president urged the cheering crowd.

Bush says his trillion-dollar tax cuts revived the US economy. His critics say the reductions went disproportionately to the wealthiest Americans and have fuelled the skyrocketing budget deficit. -AFP