The U.S. Commerce Department released personal spending and income figures on Monday. Personal spending decreased 0.3% in December, missing expectations for a 0.1% decline, after a 0.5% rise in November. November's figure was revised down from a 0.6% increase.

That was the largest decline since September 2009.

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

Falling gasoline prices and a strengthening labour market are expected to support consumer spending in the U.S. in the first quarter.

Personal income climbed 0.3% in December, exceeding expectations for 0.2% increase, after a 0.3% rise in November. November's figure was revised down from a 0.4% gain.

The personal consumption expenditures (PCE) price index excluding food and energy was flat in December, in line with expectations, after a flat reading in November.

On a yearly basis, the PCE price index excluding food and index rose 1.3% in December, after a 1.4% increase in November. Analysts had expected an increase of 1.4%.

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