The American Society of Interior Designers (ASID) reports inquiries for interior design projects are at their highest in three years. In September, the ASID Interior Design Billings Index (IDBI) registered 60.5, while inquiries rose to 69.5. As a leading economic indicator of residential and nonresidential improvement spending, the IDBI brings additional perspective to the already established construction indices. Three different variables had a strong effect on billings in Q3—firm size, region. and market sector.
“The U.S. economy remains on firm footing and economic growth for the balance of 2014 is forecasted to be in the range of 3.0.” said Jack Kleinhenz, Ph.D., economist for ASID Research. “Business conditions for the design industry continue to indicate momentum and usher further improvement in home improvement and construction activity.”
Upswing continues through 21 months
Billings and inquiries reported by industry members have remained on an upswing for the majority of 2014 with scores above 50 (any score over 50 indicates growth), for the past 21 months. For September, close to half of survey participants (49 percent) reported a minimum five-percent increase in new project inquiries; 35 percent reported a similar increase in billings.
Small firms experience largest growth
While the IDBI for firms of all sizes was 50 or above, small firms –those with two to nine employees—achieved an IDBI score of 67 in September, while sole practitioner firms scored 52.3.
West, South lead in regional increases
Although firms in every region notched increased Index scores for September, only firms in the West and the South showed consistent monthly gains over the third quarter. Throughout the year, firms in the Northeast and Midwest experienced volatile fluctuations in their billings, according to data reported to ASID.
Residential segment sees steady growth
Both single- and multi-family residential billings have shown ongoing improvement throughout the past four quarters, with single-family billings illustrating the more steady gains. The commercial segment, however, sustained its downward trend, with only the office segment ending Q3 with an IBDI above 50. Similarly, in the institutional sector, only healthcare ended the quarter above 50, while government and education sectors reported declining billings during the third quarter.
