A new poll has found that 40 percent of Americans have reduced their spending the past two months, according to Bankrate.com’s September Financial Security Index.
The overall Financial Security Index rebounded slightly from its August trough, rising from 92.3 to 93.9, which is still the third-lowest level since the monthly polls commenced in December 2010.
Any index value below 100 indicates declining levels of financial security compared with 12 months ago.
“That is how recessions are born,” said Greg McBride, CFA, Bankrate’s senior financial analyst.
The spending reductions were evident across all income groups, with 37 percent of households of incomes of $75,000 and above cutting back, while 43 percent of those with incomes $30,000 and below cutting back.
The new study was conducted by
