NEW YORK (CNN/Money) - September retail sales made modest gains from a slump in the prior month, according to a government report Friday, but fell short of economists' expectations due to continued weakness in auto sales.

Still, economists were encouraged by the buoyancy of consumers in the wake of Hurricanes Katrina and Rita and the subsequent surge in oil prices.

The Department of Commerce reported that overall retail sales inched up 0.2 percent in September compared with a 2.1 percent drop in August. Much of the gain was the result of a spike in gasoline sales during the month.

A consensus of economists surveyed by Briefing.com had forecast retail sales to increase by 0.5 percent.

Stripping out auto sales, retail sales rose a better-than-expected 1.1 percent. Economists, on average, had expected an increase of 0.8 percent.

"Consumers are always concerned about the economy but the key is whether they are predisposed to increasing caution when it comes to spending," said Michael Englund, chief economist at Action Economics. "I think today's report demonstrates that the hurricanes had an ambiguous affect on spending."

Englund added that heating prices in the winter months may eat away at holiday sales but interest rates remain low and inflation appears tame. As a result, he doesn't expect any real moderation in consumer spending until next year at this time.

As expected, auto sales continued to be weak, tumbling 2.8 percent in September following an adjusted 12.1 percent decline in August. Sales had been strong earlier in the summer as consumers took advantage of "employee discounts" offered by big car makers such as Ford and General Motors.

Gasoline sales soared, up 4 percent in September as prices surged to record highs. Consumers continued to stock up on discretionary items such as home furnishings and health and personal care items. Furniture and home furnishing sales climbed 1.2 percent in September while health and personal care stores reported 1.1 percent growth.

Building material, in the wake of the natural disasters, climbed 1 percent while electronics and appliance stores gained 0.8 percent.

Buyers shied away from department stores, however, with sales down 0.5 percent. Clothing retailers reported a 0.2 percent decline and consumers had little time for sporting goods, hobby, book and music stores, which reported sales down 0.9 percent.

John D. Morris, senior retail analyst at Harris Nesbitt, said that according to the firm's channel checks with mall retailers, consumers are bouncing back modestly in October.

"We had a perfect storm of negative factors in September and while retail sales may have better than lowered expectations, that ain't saying much about the future," he said. "We'll see some resurgence in periods like October but the consumer is going to continue to be fairly stingy."

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