It expects sales in 2011 to rise by 4-5 per cent, which is more in line with historical rates.

Global luxury sales will grow by 10 percent this year to 168bn ($235bn), according to forecasts by Bain & Co, a rate of growth much stronger than the 4 percent the consultancy predicted in April and comparable with 2008 sales.

The US and Asia have been behind an unexpectedly strong recovery in luxury spending this year but sales are expected to slow in 2011.

"The main drivers are China and Asia but the real surprise has been the rebound in the US," said Claudia D'Arpizio, a Milan-based Bain partner.

Bain expects growth to cool next year, partly due to the dollar continuing to weaken against the euro and because of the strength of sales in 2010.

The forecasts show that the luxury goods industry has bounced back sharply after last year's 8 percent fall in sales-the worst ever in the luxury market.

"Department stores are suffering less than expected."

In spite of fears about the health of the US economy, the most recent data for September show US luxury department stores outperforming the rest of the retail sector.

Higher numbers of affluent travelers have also boosted luxury sales this year, especially tourists from China.

Big brands have been the biggest winners from the rebound in demand, according to Bain, which said they were better able to respond to the crisis through investment and new store openings.