MURFREESBORO, Tenn. Oct 8 - The building blocks are in place for better growth in the tepid U.S. economy, as businesses begin investing again and households remain in good financial shape, Federal Reserve governor Susan Bies said on Wednesday. "Although uncertainties remain, I believe that the economic fundamentals are now in place to generate a sustainable, non-inflationary upturn," Bies said in remarks to be delivered to a conference at Middle Tennessee State University. A copy of her remarks was also released in Washington. However, Bies expressed worries about a lagging U.S. labor market, which has seen yet to pick up while the economy improved. "I suspect that a large part of these net job losses - particularly in manufacturing, airlines, and telecommunications - are permanent and will not be reversed as the economy gains steam. Instead, new jobs will need to be created in other sectors of the economy to replace them," she said.//