Bones and squeaky toys? No thanks. New York's pampered pooches want cashmere and baby alpaca sweaters for Christmas this year.

　　Spending on dogs has surged in New York -- a city famous for its eccentrics -- with doggie outfits, spa treatments and edible Christmas cards in hot demand this holiday.

　　New Yorker Howie Binder, a pet salon owner who has two dogs, said a "Rex in the City" craze in the last five years made New York the world's dog capital -- although there are no official figures to prove this -- and was big business.

　　New York dog owners love to spend, with cashmere sweaters at $100 each and alpaca sweaters from $55 proving to be the big sellers this season.

　　"My dogs have bigger wardrobes than most people," said Binder, owner of the Doggie Do and Pussycats, Too! store that offers grooming, day-care for dogs and upscale pet products.

　　His dogs, Jessica and Trevor, are among an estimated 3 million living among 8 million people in the city.

　　Take a walk in any of the more ritzy areas of New York and every other person has a dog -- on a leash, being carried in a bag or even being pushed along in a stroller.

　　"New Yorkers love to pamper their dogs, which are like babies that never grow up," said Binder, recalling one client who insisted Italian opera was played for her dog during grooming while another would bathe her dog only in Evian.

　　Figures from the American Pet Products Manufacturers Association (APPMA) show U.S. owners are expected to spend about $34.3 billion on their pets this year, up 6 percent on last year.

　　This holiday season, 54 percent of dog owners and 41 percent of cat owners are expected to buy their pet a gift.

　　Bill Sims, retail analyst at Smith Barney, said dogs have become increasingly popular in New York with people in their 20s or 30s who are not ready or don't want children, and with the 45-64 "empty nester" group whose children have left.

　　"People are replacing kids with dogs," Sims said. Dog clothing has become a big seller, with some owners dressing their pets in outfits to match their own. The Disney Store on upscale Fifth Avenue sells princess and Buzz Lightyear dress-up outfits for dogs.

　　Ralph Lauren's dog line this season ranges from coats to cashmere sweaters, while Burberry of London (BRBY.L) offers made-to-order trench coats for the dapper dog.

　　The church has been inundated with inquiries since blessing part of the churchyard in October for the final resting place for pets, selling about 750 plots for $500 each.