Consumers reined in their spending in August even as their incomes ticked higher, a government report showed today.

The Commerce Department said that personal income rose 0.4% in August, the largest increase since May. Income had risen 0.2% in July — up from an earlier estimate of 0.1% growth. Meanwhile, personal spending was flat. Consumption had jumped 1.1% in July — the biggest increase since December 2002 and an upward revision from an earlier estimate of 0.8% growth.

At the same time, U.S. consumers tucked away more funds than they had in July. Personal saving as a percentage of disposable personal income was 0.9% in August, up from 0.5% in the prior month. Disposable personal income, or income after taxes, climbed 0.4% in August, following a 0.2% advance in July.

Spending on durable goods fell 1.6% in August, after rising by a revised 6.2% in July. Nondurable goods spending rose 0.2% after a revised 0.3% gain. Spending on services grew 0.2% in August after a 0.5% rise in July.

The price of crude oil topped the $50-per-barrel mark earlier this week, a record in nominal terms and an important psychological benchmark. Many economists see surging oil prices as a major threat to economic expansion because the more consumers spend on energy, the less they have to spend on other goods and services. That was evident in August.

Meanwhile, the Labor Department reported that initial jobless claims rose by 18,000 to a seasonally adjusted 369,000, a seven-month high, in the week that ended Sept. 25. That marked the highest level since the week of Feb. 7. The increase was attributable to disruptions caused by hurricanes Charley, Frances and Ivan.

Jobless claims have risen in five of the six weeks since the hurricanes began to strike Florida in mid-August. The four-week average of claims, as a result, has moved steadily higher. Last week it stood at 343,500 — a two-month high.