NEW YORK (AP) — Small businesses are toning down their holiday celebrations and gifts — again.

Many companies that had cut back during the recession were willing to spend more on the holidays in 2010. But owners are uneasy because the economy is still sluggish and there are growing concerns about a recession in Europe. So many are retrenching this holiday season.

Caterers say companies are having smaller parties this year than they did last year. Many that have rented space for parties in the past are instead having the events in their offices. Or owners are taking employees to a restaurant. And they're continuing a trend that began in the past few years — they're planning holiday events or giving gifts that are meaningful or that help a charity. They want to let staffers and clients know that they're appreciated, but they don't want to do it in a frivolous way.