Luxury goods market heading for weakest growth since Lehman crash

Paris

THE global market for personal luxury goods is heading for its weakest year of expansion since 2009 as a combination of stock market turmoil, a strong US dollar and a commodity price rout curb demand.

Sales of items such as designer dresses and shoes will rise as little as one per cent to 253 billion euros (S$390 billion) in 2015, according to Bain & Co, which in May forecast growth of 2 to 4 per cent. The projection, on a basis that excludes currency swings, would be the weakest gain since sales fell 11 per cent in the year after Lehman Brothers' collapse.