US government figures show that consumer spending was surprisingly flat despite rising income in April as high unemployment kept Americans cautious.
Consumer spending barely rose after six consecutive monthly gains while personal income climbed 0.4% for the second consecutive month in April, the Commerce Department said. Spending rose by less than 0.1%.
Most economists had expected consumer spending to rise 0.3% in April from a revised 0.6% in March. The income rise was in line with expectations.
The department also said the US savings rate rose 3.6%, compared with a 3.1% rise in March.
Consumer spending is a key component of US growth. The economy has been growing since the second half of last year after plunging into recession in December 2007.
