'One in seven Americans living in poverty' but Buffet remains bullish that U.S. economy will recover

In a further setback to U.S. President Barack Obama's economic plans, new figures are set to show one in seven Americans is now living in poverty.

The increase in the number of people living below the poverty line is the sharpest since 1959, a new census will reveal.

The figures represent around 45 million people, out of population of 307 million, living in poverty and the situation is expected to get worse with the overall poverty rate potentially rising to 15 per cent.

Census: New figures will show one in seven Americans is now living in poverty, representing around 45 million people

One in five American children have fallen below the poverty line as America continues to struggle to recover from the recent global recession.

'Detroit has been the hardest hit but Florida, California and Nevada have also been hammered with foreclosures, leading to people living in their cars and on the streets,' George Hope of the Salvation Army said.

The new figures will no doubt lead to further criticism by Republicans of U.S President Barack Obama's economic policy in the lead-up to November's midterm elections.

Almost $1 trillion in stimulus spending has been authorised by the Obama administration since January 2009, with critics claiming it has been badly managed and poorly targeted.

Good news: Financial magnate Warren Buffet said he did not think there was any danger of a 'double-dip recession'

There was some good news for the President this week though, with billionaire investor Warren Buffert claiming there was no danger of the U.S economy suffering a 'double-dip recession'.

Speaking to the Montanaz Economic Development Summit, the 80-year-old said: 'We will not have a double-dip recession at all.

'I see out business coming back almost across the board... We're now employing more people than a month ago, two months ago.'

The reference of 'our business' was a comment on the 80-odd firms owned by his holding company Berkshire Hathaway Inc.

Mr Buffet said the fact banks were lending again and businesses were hiring once more meant he expected the economy to come back stronger than ever.

'This country works,' he said at the question and answer session. 'The best is yet to come.'

Microsoft SEO Steve Ballmer also said the future technological advancement and invention would help drive business growth.

'I am very enthusiastic [about] what the future holds for our industry and what our industry will mean for the growth in other industries,' he said.

'All areas of science today are moving forward and more quickly.

'The speed of scientific breakthrough is accelerating'.

Stimulus: U.S. President Barack Obama announced plans to invest $50 billion in infrastructure last week

Earlier this month though, economists signalled a much more bleak warning, claiming the world's number one economy is on the brink of collapse.

Nouriel Roubini told an economic forum in Italy: 'The U.S. has run out of bullets.

'Any shock at this point can tip you back into recession.'

Last week President Obama unveiled a series of new economic measures aimed at helping businesses and creating new jobs.

Mr Obama called for $50 billion infrastructure plan with the money being invested into roads, railways, airports, plus high-speed rail and the creation of an infrastructure bank.

The week before the US Labor Department announced the U.S economy lost a further 54,000 jobs, with the official unemployment rate rising to 9.6 per cent in August.