Earlier this month ,the American Society of Interior Designers announced that the ASID Interior Design Billings Index (IDBI) is in expansion territory with an October score of 50, slightly up from September’s score of 49.2. 67 percent report that clients have an interest in healthy materials.
A score above 50 indicates an increase in billings; however, the index’s three-month moving average of 50.8 is modestly lower than September’s score of 53.5. The new projects inquiry index was 52.4, a drop from September’s score of 55.4, yet still signals growth in design services in the coming months. The new projects index’s October score was 52.1.
Source: The American Society of Interior Designers Interior Design Billings Index (IDBI) – October 2018
Midwest and Southern firms shows signs of positive conditions, whereas Northeast and Western firms indicate otherwise. Firms in the Midwest posted a strong three-month moving average of 55.0 in October, lengthening their eight-month streak of above-50 scores. Southern interior design firms continue to show positive conditions with an October score of 51.5. However, Northeast and Western firms indicate struggling sales for those regions with three-month moving average scores of 48.5 and 46.5 in October. Optimism appears to be improving about future business conditions as the panel’s six-month outlook index was 58.7, a full 4.1 points higher than reported for September.
This month’s special questions asked survey panelists, “How interested are clients in healthy materials,” and, “Has the healthy materials market changed in the past year?” Of respondents, 67 percent report that clients have an interest in healthy materials. Only eight percent reported clients as very interested, and 25 percent said clients were not interested. Of respondents, approximately 60 percent believe that more healthy material options have become available over the past year.
One half of respondents feel that certifications and labels are the most helpful to them when specifying healthy materials. One-third believe that knowing the chemistry make-up of materials is most helpful, while 20 percent indicate that price and lifecycle information would be most helpful.
In November 2010, the American Society of Interior Designers launched its business performance index. The ASID survey, conducted monthly, is designed to provide a unique perspective on current and future business conditions for the interior design industry nationally and regionally for all firm sizes. A total of 300 firms are invited to participate in this program. Firms included in this survey primarily offer interior design services. While many are interior design only firms, panelists report from architectural firms, engineering firms, and other related enterprises. Panelists are asked to report on their current billings relative to the previous months and to report on recent business inquires. A business sentiment question is also asked regarding how general business conditions, for the entire economy, will be six months from now. The results of the survey are compiled into diffusion indexes which are helpful indicators of changes in the direction of economic activity.
