A preliminary read on consumer sentiment this morning came in at its lowest level since September, according to the University of Michigan's consumer survey. The drop reflects initial worries from consumers in the wake of recent stock market declines as well as rising recession concerns given troubles in the subprime mortgage market.
Will the consumer be able to hold up the economy as it has for so long? Gregory Miller, chief economist at SunTrust Banks, says consumers are facing a lot of headwinds.
"There are a lot of people working, but if you look back over near-term history, the increments for new jobs, while they're still healthy, have been coming in in significantly smaller increments since the middle of last year," Miller said.
"The data that we're looking at now ... is the worst since a year ago or three months ago. The trends, while they may still be healthy, are moving in a negative direction," he said.
David Greenlaw, chief economist at Morgan Stanley, says the numbers were pretty much in line with expectations and he is still optimistic that consumers will stay resilient.