Originally published by the Voice of America (www.voanews.com). Voice of America is funded by the US Federal Government and content it exclusively produces is in the public domain. October 31, 2008 Consumer Spending Drops In US, Germany -------------------------------------- http://enews.voanews.com/t?ctl=1F0D1FB:A6F02AD83191E160D034F05BABA42DA5D937473925D9872C& German officials say retail sales down more than two percent in September; Japan's Nikkei index down sharp five percent at close U.S. consumer spending -- a key driver of the world's largest economy -- dropped in September. Friday's report from the Commerce Department says it is the sharpest decline in four years. Employee of confectionery Felicitas works on Christmas figures at company's plant in Hornow, eastern Germany, 30 Oct 2008The global financial crisis has also made shoppers in Germany -- Europe's largest economy -- hesitant to spend. German officials Friday say retail sales fell more than two percent in September, a huge shift from August, when sales increased by almost the same amount. The falling consumer spending comes just one day after a report showed the U.S. economy moving toward recession. To boost the flagging global economy, central banks around the world, including the European Central Bank and the U.S. Federal Reserve, have been cutting interest rates, and Japan took that action Friday. Lower interest rates make it easier for businesses to borrow the money they need to buy new equipment, expand their operations, and hire new people. The financial crisis is also causing problems for Argentina, where Standard & Poor's cut the rating on the country's bonds - from "B/B to "B/C - on concerns that a deteriorating economic and political environment makes default more likely. The stream of disappointing economic news is worrying some investors. Some key Asian stock markets dropped sharply Friday, while U.S. stocks were mixed and European share prices rose. A drastic decline in the U.S. housing market sparked the global financial crisis, and new data show the sector is still in serious trouble. A new report by First American Core Logic, a seller of real estate data says almost 20 percent of U.S. homeowners could be in danger of losing their homes. The report says about 7.5 million Americans owe more on their home loans than their homes are now worth. The report also warns the number of homeowners in that situation could expand by two million if home prices fall by another five percent. Some information for this report was provided by AFP, AP and Reuters. .