Mounting fears about the likelihood of a global recession will be fuelled by this week’s data, which promise further bad news from the US housing market, disappointing inflation data and more evidence that industrial activity is weakening.

The US housing market remains moribund with the National Association of Home Builders index, due on Monday, expected to remain at a record low of 16 in August. Housing starts for July, due out tomorrow, are expected to weaken from 1.07m in June to 960,000.