Though September retail sales increases were moderate, suggesting that consumers are getting cautious about spending, the bottom line was still better than expected as retailers head toward the holidays, says the National Retail Federation (NRF).

"Consumer spending continues to be restrained in most areas," NRF Chief Economist Rosalind Wells said in a press release issued on Friday. "Although sales across the board show modest increases, consumers are certainly spending more cautiously."

Retail industry sales for September (excluding automobile, gas station and restaurant sales) increased 2.2 percent unadjusted over September 2006 and 0.2 percent when seasonally adjusted from August of this year, the NRF says.

September retail sales released today by the U.S. Commerce Department show total retail sales (which include non-general-merchandise categories such as automobiles, gas stations and restaurants) increased 2.9 percent unadjusted over last year and 0.6 percent when seasonally adjusted from last month.

While some categories fared well, September's unusually warm weather may have taken a bite out of sales for clothing and clothing-accessories retailers, the NRF says. Sales in that category increased just 0.3 percent unadjusted over September 2006 and decreased 0.4 percent when seasonally adjusted from August.

Meanwhile, consumer demand for popular electronics such as cell phones and MP3 players helped boost electronics and appliance store sales 3.4 percent unadjusted over last year and 0.9 percent seasonally adjusted from last month. Health and personal-care stores also showed strength, with seasonally adjusted sales from last month increasing 1 percent and 4.1 percent unadjusted year-over-year, the NRF says.

Housing market concerns impacted building-material, garden equipment, furniture and home-furnishings retailers. Sales in home-furnishings stores fell 3.6 percent unadjusted over last year and 0.6 percent seasonally adjusted from August. Sales for building-material stores increased 0.1 percent seasonally adjusted from last month and decreased 2.3 percent unadjusted over last year.