Luxury consumers are spending on experiences not goods.

If you are in the luxury goods market you had better read this release. It isn’t very good news for a Monday morning.

The average luxury consumer household in the US spent 4.6 percent less on home luxuries in 2005 as 2004, $19,990 as compared with $20,948 in 2004. Personal luxury spending, on things like luxury apparel, fashion accessories, jewelry and watches, wine and spirits, pet luxuries and pens and desk accessories, rose 5.6 percent to $10,007 in 2005.

I bet this trend is the same in Europe. And don’t forget - 57% of all US households with incomes of $100,000 or more are Baby Boomers. Dick Stroud