Global shares have fallen sharply after figures showing a drop in US consumer spending dampened the enthusiasm that followed Thursday’s US GDP figures.

US consumer spending dropped by 0.5% in September after a 1.4% rise in August - the first fall in five months.

The figures wiped out gains made on Thursday sparked by data showing the US economy was growing again.

Leading US shares lost 2.5%, while French and German shares suffered even greater losses, slumping about 3%.