The U.S. Commerce Department released personal spending and income figures on Monday. Personal spending was flat in April, missing expectations for 0.2% gain, after a 0.5% increase in March. March's figure was revised up from a 0.4% rise.

Consumer spending makes more than two-thirds of U.S. economic activity.

Consumers cut back on purchases. The saving rate rose to 5.6% in April from 5.2% in March.

Personal income increased 0.4% in April, exceeding expectations for a 0.3% rise, after a flat reading in March.

The increase in personal spending was driven by a rise in in wages and salaries, which climbed 0.2% in April.

The personal consumption expenditures (PCE) price index excluding food and energy rose 0.1% in April, missing forecasts of a 0.2% increase, after a 0.1% gain in March.

On a yearly basis, the PCE price index excluding food and index increased 1.2% in April, after a 1.3% gain in March.

The PCE index is below the Fed's 2% inflation target. The PCE index is the Fed's preferred measure of inflation.