The American Society of Interior Designers (ASID) has released the results of its Interior Design Billings Index for the first quarter of 2012. ASID firms reported increased billings for the third consecutive month, ending March with an index score of 62.5, up 13 points from the previous quarter, and nearly five points from the prior year.
“This is very positive news for the building industry, and in particular for interior design services,” said Jack Kleinhenz, Ph.D, ASID economic advisor. “The ASID Billings Index has shown a solid pattern of increased activity over most of the past year, led by continued demand for remodeling projects versus new construction spending.”
Improvement in the interior design industry is broad-based. Firms of all sizes posted a billings index of 50 or above. Firms employing between two and nine people led growth, with their responses yielding a billings index of 64.9.
Conditions improved across all regions. Firms in the Midwest, South and West regions reported gains in March, as did the Northeast, which had reported a decline in February. The West region, in particular, reported increased billings in 13 out of the past 15 months.
Billing results varied by marketing sector. Single homes, office, hospitality and government/institution reported increases in billings for the quarter, while multi-family/senior housing, retail, entertainment, healthcare/medical and education reported decreases in billings.
In the three-month outlook, there are expected to be rising non-labor costs and limited employment growth. More than half of the respondents expect prices to rise, while none of the respondents felt prices would fall. One in 10 firms hired at least one new employee in the past three months, and one of every six firms indicated they would hire in the next three months.
American Society of Interior Designers (ASID) Interior Design Billings Index tracks performance data for billings, inquiries and product sales specific to the interior design industry. The index is based on a monthly survey of 300 firms. The results are compiled into diffusion indexes centered on 50, with scores above 50 indicating an increase in billings, and scores below 50 indicating a decline. More information on the index can be accessed here.
