Luxury Market Prospects Mixed in Second Quarter
STEVENS, Pa.-While a key indicator of luxury spending has gained ground in the second quarter, spending on luxury products has continued to lag since the beginning of this year, according to the latest luxury consumption index survey from Unity Marketing.
The luxury consumption index in the second quarter picked up 6.7 points to reach 82.8, but--as the luxury-market research firm noted--this level is still less than the post-recession high of 86.9 reached in January 2010. Also, spending on luxury products in the first quarter was flat compared with the fourth quarter of 2010, and 4.1 percent less than that reported for the first quarter of 2010.
"While the worst may be behind us, there are still worrisome trends brewing in the market for luxury," said Pam Danzinger, president of Unity Marketing. Danzinger said much of the pent-up demand for luxury goods from the worst of the recession appears to have been satisfied. "Spending on luxury is likely to flatten out over the coming quarters unless there is dramatic improvement in the economy overall, which seems doubtful," she said.