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Economic news these days is pretty bleak: job growth is anemic, retail sales are stagnating, and consumer confidence is plummeting. But the luxury goods market is another story. Today, the French company Hermes bags raised its 2011 revenue forecast by 12 to 14 percent on growing demand in the U.S. and China for its silk scarves and leather handbags. Last week, Burberry, which makes raincoats and leather goods, beat its revenue forecast for that first quarter of 2011.What's behind the surging luxury goods market?

Rebound in U.S. and Europe In the May report, Bain & Company predicted that global luxury goods sales would increase 8 percent in 2011 in part due to renewed demand in the U.S., where department store sales are increasing and Europe, where tourism is strong.  2011 should see a return to normal luxury Hermes Birkin 30 goods consumption," Reuters wrote at the time. The luxury goods industry experienced its worst year on record in 2009 due to slackening demand in the U.S. and Southern Europe.

Growth of Emerging Markets The Bain report also cited continuing growth in emerging markets like China, Russia, Brazil, and the Middle East. The Financial Times points out that China, which is expected to become the biggest luxury goods consumer within 5 years, is a bellwether for that luxury goods industry. The Chinese market "skews very young (the average Chinese luxury consumer is around 30, where as the average western luxury consumer is around 55),"