by Brianna Crandall — December 17, 2014—The American Society of Interior Designers (ASID) Third Quarter 2014 Interior Design Billings Index (IDBI) reports inquiries for interior design projects are at their highest in three years, with U.S. business conditions for the design industry continuing to indicate momentum for growth. In September, the ASID IDBI registered 60.5, while inquiries rose to 69.5. Three different variables had a strong effect on billings in Q3: firm size, region and market sector.
As a leading economic indicator of residential and nonresidential improvement spending, the Interior Design Billings Index brings additional perspective to the already established construction indices, says ASID. IDBI is a diffusion index compiled from a monthly ASID survey of 300 geographically diverse firms that offer interior design services either primarily or 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.
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 multifamily 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.
