Washington, D.C. (November 18, 2015) | The American Society of Interior Designers (ASID) released the third quarter Interior Design Billings Index (IDBI) on November 16, 2015. Billings by design firms ticked up slightly in September compared to June’s IDBI score of 57.1. The ASID indices are centered on 50 percent; above 50 indicates expansion and below 50, contraction. Based on the IDBI three-month moving average, billings have been in positive territory since the third quarter of 2011, and September’s score indicates positive revenue growth.
In addition, the September new product inquiry index score of 62.8 is up from the June score of 58.3 and has shown a series of steady positive scores since late 2011.
Business conditions vary by market specialization
Design firms specializing in single-family residential projects report growth during the second and third quarters of 2015, posting IDBI scores of 57.5 and 55.8 respectively. Through all of the second and most of the third quarters, with the exception of September, IDBI scores for retail, entertainment, office, and hospitality remained between 50 and 65. Meanwhile, the institutional sector billings continued to be erratic.
Construction spending continues rebound
Total new construction spending is approximately 13.7 percent above its August 2014 level. During the fourth quarter of 2015 it is anticipated that residential improvement spending will increase to $106.8 billion for the quarter, a year-over-year increase of 13.5 percent from the fourth quarter of 2014.
Six month outlook – stronger business conditions expected
While the six-month business conditions index score of 66 for September is down from the June score of 74, the consistency of these scores (above 50) in positive territory suggest ongoing continued expansion for the design industry.
“Overall economic growth has slowed due to economic crosscurrents during the third quarter, but consumer spending, along with long-awaited housing and construction activity, are providing needed fuel to keep the economy on track,” said Jack Kleinhenz, ASID economist. “The slightly slower U.S. economy should prove to be temporary and not prove to be a major speed bump for the design industry, and panelists remain positive about the near term outlook for the industry.”
About the ASID Interior Design Billings Index
The IDBI is produced by ASID Research, under the leadership of ASID Vice President of Research and Knowledge Management David Krantz in partnership with Jack Kleinhenz, Ph.D., and Russ Smith, Ph.D., both of Kleinhenz & Associates. The index, which was begun in November 2010, is a diffusion index compiled from a monthly ASID survey of 300 geographically diverse firms that primarily offer interior design services or offer interior design services as part of architectural, engineering, and other related practices. Resulting perspectives on current and future business conditions for the interior design industry are helpful indicators of changes in the direction of economic activity. The ASID indices are centered on 50 percent (above 50 indicates expansion and below 50 contraction).
About ASID Research
ASID Research provides the design industry with regular data, studies, and reports offering insight and analysis on the state of the industry and practice. Established to educate the design industry on the status of its health and the impact of design on the way we work, live and play, ASID Research offers quantitative and qualitative knowledge of the industry. Our goal is to provide observations, vision, and compilations that inspire and inform. Outcomes include the monthly ASID Interior Design Billings Index (IDBI), the ASID Industry Outlook report, third-party collaborations, and educational grants.
The American Society of Interior Designers believes that design transforms lives. ASID serves the full range of the interior design profession and practice through the Society’s programs, networks, and advocacy. We thrive on the strength of cross-functional and interdisciplinary relationships among designers of all specialties, including workplace, healthcare, retail and hospitality, education, institutional, and residential. We lead interior designers in shared conversations around topics that matter: from evidence-based and human-centric design to social responsibility, well-being, and sustainability. We showcase the impact of design on the human experience and the value interior designers provide.