SAN FRANCISCO (Reuters) – The U.S. economy may have begun to recover in 2009, but holiday office parties are sinking even further into the dumps.

Fewer companies plan to break out the bubbly this season than in 2008, at the height of the global financial crisis, according to a survey from Challenger, Gray & Christmas Inc.

Only 62 percent of about 100 companies that responded to the survey were planning holiday parties this year, down from 77 percent a year ago and 90 percent in 2007, as recession-era cuts extended from benefits and profit-sharing to Santa hats and disc jockeys.

“For companies that have recently announced layoffs or other significant cost-cutting measures, such as wage freezes, it would be difficult to justify, let alone get in the mood for a holiday party,” said John Challenger, the firm’s chief executive officer.