U.S. consumer confidence may be at its lowest in 16 years, but the world's ultra-rich who like to spend their money on things or experiences that will enhance their lifestyle, such as travel or jewelry, aren't deterred by the shaky economy.

That's according to the 2008 World Wealth Report, released today by financial management firm Merrill Lynch and consulting company Capgemini.

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It studied the 2007 spending habits of the world's richest people. Capgemini and Merrill Lynch define High Net Worth Individuals (HNWI) as those with at least $1 million in financial assets, excluding collectibles, consumables, consumer durables and primary residences. Ultra-High Net Worth Individuals (U-HNWI) hold at least $30 million in financial assets, excluding the same variables.

Unsurprisingly, what millionaires -- and billionaires -- buy is segmented by region. Those in Europe and Latin America spent the most money on art, while travel and luxury collectibles -- such as yachts, jets or cars -- were most important to Americans.

Those in Asia-Pacific indulged most in gems, jewelry and watches, while the Middle East's richest dabbled in a bit of everything: They allocated a similar percentage of their wealth to several categories of what the report calls "passion investments." (Or in laymen's terms, money spent on luxuries, from travel to fashion to art.)

From luxury collectibles to consumables -- such as clothing, handbags and wine -- to travel and accessories, those in the Middle East weren't partial to a specific passion. The report also touched upon the fact that North America still has the most millionaires in the world: 3.3 million.

But the percentage of growth from 2006-2007 was just 3 per cent, whereas the Middle East saw a 33 per cent growth--to 400,000 millionaires--during the same period. Asia-Pacific's number grew to 2.8 million, a 7.7 per cent increase from 2006. Ileana van der Linde, a principal in Capgemini's wealth department, says that Asia will have the highest number of millionaires by 2012.

These numbers represent a shift in global spending and market share. James Chung, president of Slingerlands, N.Y.-based Reach Advisors, a marketing strategy and research firm focused on the wealthiest half-percent of Americans, says that global companies that sell luxury goods and experiences must now focus their efforts on the East.

Those that already have a hold on emerging markets, including Richemont and LVMH, are seeing better quarterly results as the U.S. market continues to weaken. Swiss luxury goods giant Richemont reported an 18 per cent rise in its fiscal year profit to 1.57 billion euros ($2.4 billion) in May 2008. In April 2008, French conglomerate LVMH reported a first-quarter revenue of 4 billion euros ($6.2 billion) in the quarter, up from 3.8 billion ($5.1 billion at the then-current exchange rate) a year earlier.

"[In the U.S.], the personal luxury arms race is over," says Chung. "It's not that people aren't spending, but when they do it's because of its inherent value, not because it's a good investment that's going to make them money five years down the line. They're not trying to keep up with the Joneses as much. They're buying things because they want to enjoy them, or let their family enjoy them."

For companies that count the HNWI and U-HNWIs as their main client, the message is clear. Go East, or perish.