Consumers turned out to be even more squeezed for cash this past holiday season than many expected.

The National Retail Federation announced this week that holiday sales had declined 2.8 percent in 2008, somewhat lower than the previously expected 2.2 percent. The organization cited "a deep recession, severe winter weather and five fewer shopping days" for the decline in consumer spending.

Combined holiday retail sales for 2008 were $447.5 billion, compared to $460.2 billion in 2007. The report cited weakness in areas like furniture, home furnishing and clothing stores, while health and personal care stores continued to show 7.6 percent sales growth.

"The current economic crisis proved to be more challenging than any had anticipated," NRF chief economist Rosalind Wells said in a statement, "Consumers showed they were more than willing to wait out retailers this year causing increased pressure on prices."

The retail figures are the latest example of how many families are on a tight budget and putting off major purchases. Payday loans and other financial tools are other ways that many people use to make ends meet and manage their debts.

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