Press release
The AIGA Design Leaders Confidence Index for the third quarter of 2009 continued a dramatic rebound from its low point of just a year ago. The index rose to 99.01, up from 88.81 three months ago and 50.66 one year ago.
The increased confidence may reflect a realization that the current recession has not hurt design practices as much as was feared, reports AIGA, the professional association for design. According to Richard Grefé, executive director of AIGA, “We’ve been listening closely to many designers working out of studios, and they appear to be very busy. Margins are tight and clients are very demanding in terms of scope and budget, but there has been business through what economists suggest was the trough of the recession. Though advertising agencies and corporations had been laying off designers, those in design studios—who represent the majority of our survey respondents—may feel they have made it through the worst of the recession.”
AIGA anticipates that the real measure of the state of the design economy is likely to come in the first quarter of 2010, as designers experience the effects of corporate budgets that were determined during a weakened economy.
Only 25 percent of respondents believe they will be more likely to hire new designers in the next six months. Many studios that are busy have avoided hiring, which, in the short run, makes business appear more robust.
Comparison to corporate CEO confidence
Design leaders’ confidence is consistent with the Conference Board measure of corporate CEO confidence, which had increased in the second quarter of 2009 and increased further in the third quarter, although neither rose as dramatically as the design leaders’ impression.
CEOs’ assessment of current economic conditions was much more optimistic, with 68 percent stating conditions had improved compared to six months ago, up from 32 percent last quarter. In assessing their own industries, business leaders were also considerably more positive. Currently, 55 percent claim conditions are better, up from 24 percent last quarter.
While CEOs seem confident, consumers are not. The Conference Board Consumer Confidence Index, which had declined in September, deteriorated further in October. The index now stands at 47.7, down from 53.4 in September 2009.
The next Design Leaders Confidence Survey will be conducted in mid-February 2010. For more information, visit www.aiga.org/confidence-index.
This article was last modified on January 18, 2023
This article was first published on November 11, 2009
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