U.S. retail sales rose for a third consecutive month in September, posting a stronger-than-expected increase that should fend off fears of a double-dip recession but doesn't signal a strong recovery. Retail sales rose 0.6% in September, the Commerce Department reported Friday.  Economists surveyed by Dow Jones Newswires had projected sales would rise by 0.4%.

The increase follows a revised 0.7% climb in August — the biggest increase in retail sales in five months. The Commerce Department initially estimated August sales rose by 0.4%.

September's overall increase in retail sales was driven largely by purchases of automobiles, auto parts, electronics and appliances. Sales of autos and parts rose 1.6% in September, after rising a revised 1.0% in August.

September retail industry sales (which exclude automobiles, gas stations, and restaurants) increased 0.4% seasonally adjusted over August and 4.3% unadjusted over last year.
 
“There’s no question that the industry is in a much better state than this time last year, however consumers are still very reliant on sales and promotions,,” said NRF President and CEO Matthew Shay. “It is encouraging to see increases in key discretionary spending categories, marking a significant change in what retailers experienced throughout the economic downturn.”
 
“September retail sales show that the economy is continuing to grow, even though it remains at a subpar pace,” said NRF Chief Economist Jack Kleinhenz. “Given the stubbornly high unemployment and other challenges that families are facing today, these increases are still quite impressive.”
 
With the onset of fall, building material and garden equipment stores definitely got their share of traffic. Sales at these stores increased 0.6% seasonally adjusted month-to-month and a solid 6.0% unadjusted over last year. Electronics and appliance stores also saw strong gains, with sales increasing 1.5% seasonally adjusted from the previous month and 5.7% unadjusted year-over-year.
 
Sales at furniture and home furnishing stores increased 0.5% seasonally adjusted and 2.9%unadjusted year-over-year. Health and personal care stores sales showed strength as well, with an increase of 0.5%seasonally
adjusted over August and 3.9%unadjusted year-over-year.

Clothing store sales dipped 0.2% in September as general merchandise sales remained flat. Sales at sporting goods, hobby, book and music stores increased by 0.2% in September. Gas station sales rose 0.4% in September. Food and beverage store sales also increased 0.4%. Sales at health and personal care stores rose 0.5%. Mail order and Internet sales rose by 1.0%.