ABC News

US billionaire investor Warren Buffett says he believes his country’s economy is already in recession.

In the latest bad news on the US economy, figures show construction spending in January suffered its biggest fall in 14 years.

Mr Buffett says falling house values and rising unemployment have put millions of Americans into a precarious financial position.

Asked in an interview with the CNBC business television network whether he thought the economy was in a recession, Buffett responded: “I think it’s clear. What isn’t clear, is how far it goes.”

“I see what’s going on in terms of the wealth of Americans and how they feel about their houses, I see purchasing power decline, obviously when someone forecloses on a home, the purchasing power of that family is not going to be very much. I see unemployment increasing a little bit,” Mr Buffett said.

“On balance most people’s situation, certainly their net worth, has been heading south now for a considerable period of time,” he added.

 Here is an interview with Buffett on CNBC.