Consumer spending rose at a moderate pace in December, the Commerce Department said this week, a sign that consumers are being cautious despite signs that the economy is beginning to improve.

According to the Commerce Department, personal incomes rose for the sixth-straight month at 0.4% in December while personal spending rose for the third-straight month by 0.2%. The rise in personal incomes was slightly more than expected while personal spending came in slightly less than expected, according to Thomson Reuters.

In the last week alone, several economic signs have hinted at a recovery. Last week, the Commerce Department reported that the economy grew at the fastest pace in more than six years during the fourth quarter as businesses made less-aggressive cuts to inventories and stepped up spending, Economic Growth Soars; Good News For Collections, Jan. 29.

Also, the National Retail Federation last week released its 2010 forecast. It calls for a 2.5% rise in U.S. retail sales this year, which would be an improvement from a 2.5% drop in 2009 and a 1.3% increase in 2008. The data covers retail industry sales, excluding automobiles, gas stations, and restaurants.