The economy remains President Barack Obama's top vulnerability. His campaign has consistently sought to direct attention elsewhere, while Republican challenger Mitt Romney keeps pounding away at Obama's economic stewardship.

But guess what? The economy is improving — steadily if modestly.

Employers added 163,000 jobs in July, home prices and exports are up, stocks are near this year's highs and July's consumer spending growth was the strongest in five months.

The good numbers are easing fears of another recession, despite continued overseas weaknesses, and offering hope for a rebound in the second half of the year.

Unemployment at 8.3 percent remains too high. The new positive data won't bring it down by much before Election Day. But momentum and direction also count in politics.

For now, both campaigns are sticking to their story lines.

Obama risks appearing out of touch with reality if he crows about a few upbeat numbers. He says things are improving but acknowledges challenges remain.

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