Bush says economy has strong foundation

U.S. President George W. Bush makes a statement about U.S. military casualties in Iraq, outside of the Oval Office of White House in Washington July 31, 2008.

WHITE SULPHUR SPRINGS, W., Virginia (Reuters) - U.S. President George W. Bush said on Thursday that the latest economic data showed the foundations of the U.S. economy are strong.

"Exports are on the rise. Durable good orders are strong. That suggests that businesses are anticipating a better second half of the year. So I believe the foundations of this economy are strong," Bush told a meeting of coal producers.

He said a report of modest economic growth in the second quarter was "not great news but encouraging news.

"Now it's not as good as we'd like it to be," Bush said. "A few months ago, there were predictions that the economy would shrink in the first quarter, not grow. But in fact the opposite has happened."

(Reporting by Matt Spetalnick; Editing by Tom Hals)