ASID Releases Q3 Interior Design Billings Index Report

November 23, 2016  by Jane Chero in Business Strategy, Designer Weekly, Financial Reports, Industry   

The index value dipped to a score of 54.0 from June’s score of 55.9 but remains in expansionary territory indicating positive momentum and favorable business conditions. The new project inquiry rate increased to a score of 59.2, slightly above its June score of 58.2.

While scores above 50 indicate expansion, scores below 50 indicate contraction. December 2015 was the last time the IDBI score slipped below 50.

The report indicates design firms of all sizes have experienced an upswing in billings in third quarter. Interior design firms in the South, Midwest and Northeast ended the third quarter on good footing but the IDBI score dropped 14 points in the West.

Design firms specializing in single and multifamily residential areas have lost some momentum. Commercial interior design firms report three-month moving average IDBI’s of 54 (Commercial) and 53 (institutional).

The six-month business conditions index score of 59 for September inched higher than the 57 score reported for June leading the design industry to expect expansion for the future.

U.S. payroll employment rose by 156,000 in September with expansion now in its seventh year. The unemployment rate edged higher to five percent.

"The U.S. economy, with its 2.9 percent increase in economic activity during the third quarter, appears to have pulled out of the weak cycle of growth that began in late 2015 and continued through the second quarter of 2016," commented Jack Kleinhenz, ASID economist. "The economy is expected to build momentum in the consumer and housing sectors. This turnaround is good news and a key factor that supports the positive outlook reported by ASID panelists."