U.S. consumer spending nearly flat in April

U.S. consumers' personal income continued to rise while their spending was little changed in April, a sign of Americans' cautious consumption attitude, the Commerce Department reported on Monday.

In the month, personal income increased 0.4 percent following a less than 0.1 percent growth in March. Personal spending decreased 2.6 billion U.S. dollars, or less than 0.1 percent, compared to a 0.5-percent-increase in the previous month.

Personal saving rate continued rising in April, reflecting consumer caution on spending. The personal saving rate rose to 5.6 percent in April from March's 5.2 percent.

The price index for the personal consumption expenditure (PCE), a gauge for the inflation level preferred by the Federal Reserve, increased 0.1 percent year on year, and the PCE price index, excluding volatile food and energy, increased 1.2 percent from April a year ago.

Both the headline and core PCE index have been below the central bank's 2-percent target for years. Fed chairman Janet Yellen stressed in a recent speech that with oil prices no longer declining, she and other Fed officials believed the consumer price inflation will move up to 2 percent as the economy strengthens further and as other temporary factors weighing on inflation recede.

In the speech, Yellen hinted that the central bank was on track to raise its benchmark interest rate this year despite the weak performance in the first quarter. Market investors widely see September or even later as the most likely time for a Fed rate increase. The Fed has kept its benchmark short-term interest rate near zero since December 2008. Endi