The US construction industry sank deeper into recession last month. According to the commerce department, new home starts recorded a 10.2 percent decline and now stand at the lowest level in 14 years.

However, news from the housing market is likely to get much worse before it gets better. New building permits, a sign of future construction, declined by a staggering 7.3 percent, following on from a 4.8 percent decrease in August.