Editor's Note: Some linked articles may be behind subscription paywalls.
1. Small business confidence hits 6-year high
Small business confidence hit a six-year high, Reuters reports based on data from the National Federation of Independent Business. The Small Business Optimism Index went up 3.4 to 105.1 in December, the highest mark since October 2018.
The strong level of confidence has been tied to Donald Trump's win in the November presidential election and reflects a lower level of concern than recent consumer sentiment surveys concerned about tariffs and potential inflation.
"It was the second straight month that the index pushed past the 51-year average of 98," Reuters reports. "The survey's Uncertainty Index dropped 12 points to 86."
2. LA fires to leave lasting impact on local economy
Even with the wildfires still raging, experts are already looking forward to the long-term effect Los Angeles fires will have on the region’s local industries. Economic losses are far from finalized, but the New York Times reports a figure of $250 billion to $275 billion based on AccuWeather data, with residents and small businesses among the groups expected to face the biggest burden.
“I’m not sure there’s enough money to go around,” Margaret Walls, director of the Climate Risks and Resilience Program at Resources for the Future, told the Times. “Communities haven’t figured out how to pay for this.”
The communities affected by the fires do hold a certain advantage to other regions, with the median annual household income in the affected neighborhoods being higher — and in some cases, double — the national average.
In other California-related news, Atlas Hospitality released its full-year 2024 development survey, showing the lowest rate of new hotel openings in years. Just 35 new hotels opened across the state in 2024.
3. Adding elevated mocktail options serves up opportunities for hotels to impress guests
The days of simple, sugary non-alcoholic drinks are gone, with hoteliers and restaurateurs alike expanding their beverage menus to include more dynamic zero-proof options.
On the latest episode of the Hotel News Now podcast, Karl McElligott, food and beverage director for Olympia Hospitality, explained that guests want healthier options without sacrificing the experience of having a cocktail.
“The guest is kind of demanding something that’s a little bit more complex, a little bit more dynamic, a little bit more flavor-forward,” he said. “They still want a food and beverage experience out of it, and they’re looking to balance both sides of the equation.”
4. US, UK report updated inflation figures
The U.S. consumer price index increased 0.4% in December with the core CPI annual rate hitting 3.2%, which was slightly lower than economists' expectations of 3.3%, CNBC reports.
“Today’s CPI may help the Fed feel a little more dovish. It won’t change expectations for a pause later this month, but it should curb some of the talk about the Fed potentially raising rates,” Ellen Zentner, chief economist strategist at Morgan Stanley Wealth Management, told the news outlet. “And judging by the market’s initial response, investors appeared to feel a sense of relief after a few months of stickier inflation readings.”
Meanwhile, the monthly inflation rate in the U.K. fell to 2.5% in December, down from 2.6% in November but still ahead of the Bank of England's 2% target, the BBC reports.
UK Hospitality CEO Kate Nicholls said there are some worrying signs on the horizon despite the trajectory of inflation.
“While it’s positive there has been a slight dip in inflation, there has not been enough movement to calm the fears among hospitality businesses that we’re entering a troubling period for the economy," she said. “This will only get worse as we head towards April, when £3.4 billion of costs will be leveled on the hospitality sector. These damaging costs are forcing businesses to slash investment, cut jobs and raise prices — none of which will drive economic growth or help reduce inflation."
5. New York sees results from congestion pricing
Early returns from New York's new congestion pricing program seems to indicate some levels of success in reducing traffic in the busiest parts of the city, the New York Times reports, but some observers say it's still too early to note whether a decrease in traffic will stick.
"In the first six days of the program, officials estimated, there were tens of thousands fewer vehicles entering the busiest parts of Manhattan below 60th Street, which includes some of the city’s most famous destinations like Times Square, the Empire State Building and the High Line," the newspaper reports.
But detractors say that might be a symptom of timing and the small sample size.
“There’s only a lull now because it’s after the holidays and it’s cold out,” said Tony O'Reilly, a New Jersey resident who takes the bus into the city twice a week.