September FSI — cut spending

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There continues to be a tremendous amount of uncertainty about the economy. So how are consumers reacting? is out with the monthly Financial Security Index and here with insights is Greg McBride, senior financial analyst for

Greg,the economy greatly depends on consumer spending, so what did you find?

“Forty percent of Americans say they’ve cut back on their spending in the last 60 days due to the rollercoaster stock market or concerns about the economy, and this was pretty even across all income groups. Now, this type of widespread cutback in consumer spending, if it’s sustained for any length of time, that’s how recessions are born.”

And how are Americans feeling about their overall financial security?

“There was a slight rebound from the really low August levels, but Americans are still feeling less secure relative to 12 months ago; no matter which component of financial security you look at … jobs, savings or debt.”

Ok, thanks Greg…to read more, just log onto I’m Kristin Arnold.