The interior design services sector is growing, as is consumers’ renovation spending, according to the American Society of Interior Designers (ASID)’s most recent Interior Design Billings Index (IDBI).
The report serves as a business performance index of the interior design industry by analyzing the monthly survey of nearly 300 design firms of various sizes across the U.S. The IDBI, which was established in 2010, reviews responses on a quarterly basis to offer insight into the industry’s current and future business conditions. The latest forecasts are based on interior designer responses from April through June of 2018.
Evidenced by the second quarter results, business performance is varied by geographical location. Interior designers in the Midwest witnessed increased billings, as did those based in the South, for the fourth quarter in a row. The opposite was the case for design firms based in the Northeast and West, which experienced a decline in billings compared to the first quarter report.
Other key highlights include the industry’s positive contributions to the U.S. employment market, which is now entering its ninth year of expansion. An additional 2,300 jobs were added to the architectural and interior design services sector in May, marking the largest gain since November 2017.
Increased renovation spending will help balance the competition. According to the report, residential improvement spending is showing a 5 percent year-over-year increase. And interior designers surveyed expect new project inquiries to remain at an even rate in the coming months.
“Going forward, the U.S. economy remains on solid ground. Economic fundamentals for the economy and the consumer are in place and consistent with output increasing at a 3 percent annual rate, propelled by the federal fiscal stimulus,” claims ASID economist Jack Kleinhenz. “Sustained employment gains and household incomes have fueled growth in the consumer spending growth, supporting business investment and further employment gains, and creating an economic virtual cycle. However, while the drag from trade tensions is relatively small, it has increased uncertainty. It is too early and a very complex analysis to measure any short run disruptions.”
Read the entire 2018 Q2 IDBI report here.