U.S. consumer spending, a key economic gauge, rose by 0.5 percent in April, the Commerce Department reported on Friday.

The April rise in consumer spending followed a revised 0.4 percent gain in the previous month, and was also better than the 0.4 percent increase expected by many analysts.

But the personal incomes fell by 0.1 percent in April followed a strong increase of 0.7 percent in March. Many analysts expected a 0.3 percent increase in April.

Core consumer prices, which exclude volatile energy and food costs, were up 0.1 percent in April.

Americans' personal saving rate -- savings as a percentage of after-tax income, fell by 1.3 percent in April after a 0.7 percent decline in March.

A negative saving rate means that Americans are borrowing or dipping into savings to finance their consumption.

Source: Xinhua