U.S. President Barack Obama said Saturday the economic stimulus bill has created or saved 1 million jobs and the economy is "moving in the right direction."

In his weekly radio and Internet address, the president also noted a report this week showed the gross domestic product had grown 3.5 percent in the third quarter, marking its first gain in more than a year.

"Over the past 10 months, I've often had to report distressing news during what has been a difficult time for our country," Obama said. "But today, I am pleased to offer some better news that -- while not cause for celebration -- is certainly reason to believe that we are moving in the right direction."

He said the country has a "long way to go before we return to prosperity" but added, "It is easy to forget that it was only several months ago that the economy was shrinking rapidly and many economists feared another Great Depression."

Obama said his administration has increased lending to families and businesses, modified mortgages to help hundreds of thousands of homeowners keep their homes and cut taxes for 95 percent of working families.

At the same time, he said, the recovery act has created or saved more than 1 million jobs across the country.

"That's more than 1 million people, who might otherwise be out of work today, folks who can wake up each day knowing that they'll be able to provide for themselves and their families," he said.

But with unemployment at a quarter-century high of 9.8 percent, Obama acknowledged "economic growth is no substitute for job growth."

"And we will likely see further job losses in the coming days, a fact that is both troubling for our economy and heartbreaking for the men and women who suddenly find themselves out of work," he said

"But," he added, "we will not create the jobs we need unless the economy is growing; that's why this GDP report is a good sign."