Figures show that the sale of new homes in the United States has fallen sharply to the lowest level since the government started keeping records 40 years ago. These new figures come a day after equally dismal news about the sale of existing homes which have reached a 15-year low. Paul Adams reports from Washington.

Some economists attribute the bad results to the end of a federal tax credit whichexpired earlier this year, but others warn that the economy is teetering on the edge of another recession. There could be more bad news on Friday when the government releases lower-than-expected growth figures for the second quarter of this year.