Survey: Luxury consumers spending less

Deepening economic worries have now hit the luxury end of the market. A new survey from Unity Marketing finds that luxury consumer spending is at the lowest point in two years, dropping 21% from an average $15,283 in the second quarter of 2007 to $12,142 in the third quarter. Luxury shoppers are holding back on personal luxuries such as high-end purses, jewelry and watches but are continuing to spend on travel, fine dining and beauty services.

So far the overall economic cloud has not touched the "super-affluents," those with a household income of $150,000. Their level of spending has remained the same while the "upper-middles" with a household income of  $75,000-$100,000 and the "lower-uppers" with a range of $100,000-$150,000 have begun to cut back. The drop in consumer confidence is believed to be due to the increase in foreclosures and skyrocketing oil prices among other reasons.  Thomas Bodenberg, Unity Marketing's economic forecaster, says that for luxury retailers the the outlook for the Christmas season is clouded at best.