Late last year, the highest-income households started spending more confidently, while other consumers held back. But their confidence has since ebbed, according to retail sales reports and some economic analysis.

“One of the reasons that the recovery has lost momentum is that high-end consumers have become more jittery and more cautious,” said Mark Zandi, chief economist for Moody’s Analytics.

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Synovate’s luxury research expert and CEO for the UK, Jill Telford, said people have an odd relationship with luxury. “Some of us feel we deserve it and revel in unabashed luxury. Some indulge in it but feel they maybe should not have. Some cannot afford it, but want it. And for many, it’s simply not even a consideration… the basics in life are tough enough to obtain.
“Of course a recession makes luxury retail even more challenging. Selling things that arguably people do not need during a time when many are at least morally forced to examine their spending patterns makes for interesting times. “The luxury marketers that are doing well are doing so by knowing their markets and positioning their products just so.”

This Synovate survey takes a look at luxe dreams, extravagance, indulgence and the finer things in life. What do people feel when they buy luxury? How do they treat themselves? And what is their luxury brand shopping style? The company spoke with over 8,100 people across 11 very different markets.

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The “aspirational shoppers’’ – middle-class consumers with luxury tastes – have disappeared during the Great Recession. Their new found frugality has contributed to an estimated 16 percent plunge in luxury spending over the past year, according to a report by Bain & Co.