According to CNNMoney.com, the upcoming fourth quarter is the make-or-break period for the retail industry and the path leading to the crucial holiday season is peppered with land mines. As much as 50 % of merchants’ annual profits and sales are accounted for in two months: November and December. So far consumers continue to spend confidently, unmoved by the growing crises in the housing and credit markets.

Retail economists credit a still resilient jobs market and growth in real income for making Americans feel confident about their spending ability. But that confidence is waning according to one key barometer. The Conference Board on Tuesday reported a steep drop in consumer confidence in August, the biggest in nearly two years and possibly the first clear sign that consumer spending - which accounts for two-thirds of the nation’s economy - is on the brink of a contraction.

And that possible contraction in consumer spending along with housing, credit market turbulence, product recalls and declining store traffic threaten 2007’s holiday season.

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Asian stocks fell Thursday morning, battered by persistent jitters over U.S. housing loan problems and their possible damage to global financial markets.

The benchmark Nikkei 225 index lost 2.6 % on the Tokyo Stock Exchange in the morning session, and South Korea’s main benchmark fell more than 7 % in early trade after markets there were closed Wednesday for a national holiday.

Taiwan’s main stock index was down 4 % at midday; China’s main index in Shanghai was down 1.4 %.

Singapore’s Straits Times Index was down 4.12 %.

Hong Kong’s blue chip Hang Seng Index was down 4.2 % at midday.

Indonesia’s standard stock index fell as much as 5.6 % in morning trade.

The Philippine benchmark was down 6.1 %, falling below a symbolic 3,100 support level early and then crashing through 3000.

Australia’s benchmark S&P/ASX 200 index was down 3.1 %

The New Zealand benchmark NZX-50 was down 1.6 %. The index has lost more than 8 % in three weeks, including 4.5 % since Monday. 

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