File this under “Recession? What recession?” According to a recent report, worldwide sales of luxury items such as fancy handbags and jewelry were actually up an unexpected eight percent last holiday season.

Consulting firm Bain & Company and Altagamma, an Italian “luxury trade group,” says the surprising up-tick ended two years of declining sales for luxe goods. The even better news? As consumers gain confidence in the economy, worldwide sales for items of self-indulgence could reach a record $227 billion this year.

Americans remain the top dogs when it comes to buying bling, says the report. But high-end sales in China jumped 30 percent in 2010 and is set to rise 25 percent this year.

So party like it’s the 1999 because, apparently, conspicuous consumption is back.

Luxury goods starting to fly off shelves at record pace as consumers regain their confidence [NY Daily News]

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