American consumers hold the key to whether the unexpected drop in August employment signals either a continuation of a gentle slowdown or a tumble into outright recession for the U.S. economy. The question is whether, after years of spending, we're spooked enough now to lock up our credit cards.

A net decline of 4,000 jobs reported by the Labor Department

Friday caps a summer of worrisome economic news soaring mortgage foreclosures, declining housing prices, credit tightening and wild stock market swings. Throughout it, though, consumer spending has remained a bright spot.

Now the picture is turning decidedly mixed. While many corporations continue to report strong earnings and predict solid growth for the year, companies from Apple to Office Depot to Harley Davidson have signaled their concerns about

consumer spending.

Consumers, whose spending accounts for roughly 70 percent of the economy, have already started pulling back, said Joel L. Naroff, president and chief economist at Naroff Economic Advisors. If the pullback accelerates "it almost sets off a domino effect. Businesses, which are increasingly uncertain in their spending decisions, could say, 'Why spend into a recession?' Then you've created one."