Barclays Warns: "It May Be The Start Of A Luxury Recession"
Prices of food, shelter, and energy have soared over the past year -- but the rich weren't deterred and fueled sales at luxury companies. But now, with macroeconomic headwinds getting stronger, a new report indicates wealthy consumers are dealing back spending as "it may be the start of a luxury recession."
Ryan Preclaw, head of research investment sciences at Barclays, pointed out that new credit card data shows a softening in consumer spending among high-income shoppers.
"After many years where consumer spending growth on luxury goods has been stronger than spending on basics or discount items, we see now spending by luxury consumers clearly lagging," Preclaw wrote in a note to clients.