Design leaders see a stronger design economy coming

NEW YORK, August 25, 2008.  AIGA’s Design Leaders Confidence Index shows the beginning of a rebound in leading designers’ confidence in economic growth, rising to 68.18 from its three-year low of 64.06 in the second quarter.

Sixty-two percent feel the general economy is worse today than it was six months ago, yet only 45 percent feel the design economy is worse, and one in six believe the design economy is better today than it was six months ago. Only 36 percent feel the general economy will be weaker six months into the future and even fewer (28 percent) anticipate a weaker design economy by spring 2010. About one in three are less likely to add staff today than they were last April, while one in four are less likely to acquire additional equipment.

This turnaround in attitude—one in three expects the design economy to be even stronger within six months—mirrors some other indices, as well as anecdotal evidence discovered by AIGA. In conversations with designers in all parts of the country, there has been a consistent refrain: many designers are anxious about the economy, but business has not decreased. Many offices are reporting they are busier than ever before, both in the print categories and interactive disciplines. However, many are particular because their business is strong and they are cautious about hiring.

In other indices, the Conference Board’s Consumer Confidence Index, which had declined in June, held steady in July.

The Conference Board measure of corporate CEO confidence, which had declined in the first quarter of 2008, inched up to 39 in the second quarter, up slightly from 38 in the first quarter (a reading of more than 50 points reflects more positive than negative responses). This may indicate a bottoming out in corporate perspective rather than a rebound.

Lynn Franco, director of the Conference Board’s Consumer Research Center, noted: “CEOs continue to rate current economic conditions as unfavorable, and their short-term expectations suggest this slow growth environment will exist for the remainder of the year.”

Looking ahead six months, the outlook is mixed. Currently, 24 percent of business leaders expect economic conditions to improve in the next six months, up from approximately 20 percent last quarter. Expectations for their own industries, however, did not improve. Only 20 percent of CEOs anticipate an improvement in the months ahead, down from 23 percent last quarter.

The next survey will be conducted in late October 2008.

For more information, visit www.aiga.org/confidence-index.