Originally published in Interiors & Sources

11/29/2011

ASID Interior Design Billings & Inquiries Index Dips in Third Quarter

 
ASID Interior Design Billings & Inquiries Index Dips in Third Quarter

WASHINGTON, D.C.—Results of the American Society of Interior Designers’ (ASID) Interior Design Billings & Inquiries Index for the July-August period of 2011 signaled that business conditions for the interior design industry were aligned with the broader U.S. economy’s sub-par growth.

The ASID Interior Design Billings Index fell to its lowest point in July (45.1), then recovered in August (48.6) and increased slightly in September (48.2), but has yet to reenter positive territory (above 50.0).

On a positive note, the Inquiries Index was up nearly 10 points in August (55.1 vs. 45.8 in July) indicating a possible uptick in the fourth quarter.

According to Jack Kleinhenz, chief economist for ASID, “Overall economic growth is expected to pick back up over the next few months. The labor market is improving and consumer spending is up, although employment growth remains weak. What’s in store for the interior design industry in the upcoming months, however, remains unclear.  Political and economic uncertainties remain as major speed bumps to recovery, keeping credit tight and jostling consumer confidence.”

Key Index Highlights:

  • Across market sectors, billings continue to soften compared to the first half of the year.  Some sectors did register an increase in September, as well as increases in inquiries.
  • Regional Indexes: Northeast 54, Midwest 40, South 47, West 53
  • Sector Index Means: Residential 50, Commercial 46, Institutional 43
  • The commercial sector (defined as retail, entertainment, hospitality and office sectors) has been in decline since April and continued to be weak in the third quarter. Office and retail showed some improvement in September.
  • Likewise, all three components of the institutional sector (government, education and healthcare) declined through the summer months.  Still, the U.S. Census Construction report for private non-residential construction is showing strength in some of these sectors, including new investment in hospitals and clinics.

These trends may suggest why, even with the national downturn in billings during the third quarter, billings were up in September for all firm size groups except for firms with between two and nine employees. The rebound in office and retail may have influenced the similar rebound in firms with between 10 and 24 employees.

By regions, both the West and the Northeast improved over the last three months, even though the national index showed a downturn. Comparing the ASID and AIA indexes, the Northeast region was the only region that both architectural and interior design firms tracked on a positive trajectory together. Likewise, architectural firms and interior design firms in the South showed that business conditions have deteriorated.

More information is available at ASID’s website.

 

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When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.

Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.


Mitsubishi Electric’s H2i R2-Series heat pumps provide 100% heating capacity down to 0° F and simultaneous heating and cooling down to -4° F delivering year-round comfort, regardless of climate zone.

 
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