Fast-growing luxury goods sales in China will return the industry to growth next year, while the decline in 2009 will be less severe than expected, according to a study published yesterday.

Bain & Co, the consult-ancy, expects luxury goods sales this year to fall 8 per cent - instead of the 10 per cent forecast in April - and grow 1 per cent next year to €153bn ($228bn), after two years of contraction.