US housing slowdown intensifies

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Homebuilding in the US has fallen to a 10-year low, in fresh evidence of trouble in the US housing market.

July saw home contruction fall 6.1% from the month before to 1.38 million units, the smallest number since January 1997.

The poor performance comes as markets around the world have been reeling amid the fallout from collapsing confidence in US home lending.

Investors are worried about how far the problems will extend.