WASHINGTON — President Barack Obama said Saturday that reports the economy is growing again and that more than 1 million jobs were saved or created by his stimulus plan show "we are moving in the right direction."

But he tempered his upbeat message with a cautious word about further job losses and progress yet to be made.

Unemployment hit a 26-year high of 9.8 percent in September, and the October report due next week could show it topping 10 percent.

The government reported this week that the economy grew 3.5 percent from July through September, the first signs of growth in a year and unofficial confirmation that the economic slide that began in December 2007 is over. Separately, the White House said Obama's $787 billion stimulus plan — a mix of spending and tax cuts — had saved or created more than 1 million jobs.

That news, "while not cause for celebration, is certainly reason to believe that we are moving in the right direction," Obama said in his weekly radio and Internet address.

"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," the president said.