Attributes

Attribute	Short	Description
Strength	ST	Lift, move and break items. Important for hand-to-hand combat.
Intelligence	IQ	For thinking and problem solving. Also affects number of skill points.
Luck	LK	Avoid damage, find things, improve odds in hand-to-hand combat.
Speed	SP	For moving quickly and escaping tight situations.
Agility	AGL	Enhances acrobatic ability. For dodging blows and improved hand-to-hand combat.
Dexterity	DEX	For lock-picking or aiming weapons. Very important for combat.
Charisma	CHR	Affects how NPCs will react to you.

How attributes affect skills

Skills are bound to an attribute. So if you raise an attribute then this also makes the bound skills more effective. The mathematics behind this are currently unknown.