Nasty headlines about the economy and stock market prompted 40 percent of Americans to reduce their spending in the past 60 days, 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 inDecember 2010. Any index value below 100 indicates declining levels of financial security compared with 12 months ago.

"Forty percent of Americans say they have cut back on spending in the past 60 days due to the roller-coaster stock market or concerns about the economy. That is how recessions are born," saidGreg McBride, CFA, Bankrate's senior financial analyst.

The spending reductions were evident across all income groups, with 37% of the highest-income households ($75,000+) cutting back and 43% of the lowest-income households (under$30,000) cutting back. Those between ages 50-64 were most likely to cut back, at 46%. Just 32% of those under age 30 cut back.

Other Notable Findings:

• 23% of those under age 30 feel more secure in their jobs than they did 12 months ago, compared to 10% or less of those age 50 and up.
• Among those between ages 50-64, half are less comfortable with theirsavingscompared with one year ago.
• Among those age 30 and up, more Americans reported lower net worth than higher net worth compared to last year.

The new study was conducted by Princeton Survey Research Associates International and can be seen in its entirety here.