Forty-three percent of Americans now approve of the way Bush is managing the world's largest economy, up from 41 percent last month. Forty-six percent disapprove, down from 51 percent last month. Read the poll.

Since the late October poll, the Commerce Department reported that the economy grew at a breakneck 7.2 percent annual rate in the period from July through September. And the Labor Department estimated that 286,000 jobs were created in three months from August through October, while the nation's unemployment rate sank to 6 percent, the lowest rate since April.

Though it's still a minority, a larger percentage of Americans believe the economy is getting better. Thirty-four percent say it's improving, up from 28 percent who thought so last month. Fewer Americans, 23 percent, think the economy is in decline, down from 27 percent last month.

And half of all Americans now consider the economy in "good" shape, compared to 45 percent who thought so in October. Forty-eight percent of Americans believe the economy to be in "bad" shape, down from 54 percent a month ago.

Americans are far more confident in Bush's ability to handle the economy than they were in his father's ability 12 years ago, at the same point in his term. In November of 1991, only 25 percent of Americans approved of the job the first President Bush was doing on the economy, compared to 66 percent who disapproved.

Iraq confidence down

While the economy remains the top priority for most Americans, the reconstruction of Iraq is increasingly important. See related story.

The telephone survey, conducted Monday through Wednesday from a sample of 1,000 adults, found that 29 percent of respondents said the economy and the labor market are the most important problems facing the country today, far ahead of any other international or domestic problem. The war with Iraq came in second at 18 percent, double the importance it was given in September, before a spate of attacks against Americans believed to be orchestrated by Iraqis loyal to deposed Iraqi leader Saddam Hussein.

The recent slew of American casualties may have caused Bush's overall approval ratings to fall slightly to 50 percent. That's down sharply from his high of 89 percent approval in September 2001 and in line with his ratings in August of that year, the lowest they reached during his three years in office.

Asked if the results of the war were "worth it," 40 percent of respondents said yes, while 51 percent said the results of the war were "not worth it." That's down from 46 percent who said yes in August and up from 45 percent who said no three months ago.

And half of Americans now say the reconstruction of Iraq is going "badly," the highest number who gave that assessment since Bush declared an end to "major combat operations" on May 1. Forty-seven percent said the reconstruction is going "well."

Asked about the general direction of the country, 53 percent of Americans believe Bush is taking the country on the "wrong track," while only 39 percent say he is leading the nation on the "right track."

The poll's margin of error was plus or minus 3 percent.