Design leaders’ confidence in the economy strengthens slightly

NEW YORK, February 6, 2009. AIGA’s Design Leaders Confidence Index for the fourth quarter of 2008—based on responses from 366 design leaders working in various types of practices—has gained slightly from the previous quarter, increasing from 50 to 54. The benchmark for judging this index is 100, where the confidence level was when AIGA began tracking this information, in April 2005.

In terms of the design economy, 70 percent feel the economy is worse now than it was on October 1, 2008. However, there is some optimism regarding the outlook for the coming six months: according to 30 percent, the design economy will be moderately better by July. Another 35 percent feel it will be the same, and the remaining 35 percent feel it will be worse.

While a third believe their likelihood of adding staff is no different than it was three months ago, nearly 60 percent feel they are less likely to add staff. Plans to invest in hardware and software are varied: 40 percent of respondents judged likelihood of investing as no different from three months ago, and a similar number feel investment is less likely.

In January, the Conference Board Confidence Index of corporate CEOs, asking similar questions, hit its all-time low, down to 24 from 40 in the previous quarter.

CEO Confidence is at the lowest level ever recorded since the survey was first conducted in the second quarter of 1976. This is only the second time the measure has fallen below 30. The last time was during the second quarter of 1980, when it stood at 29.

Lynn Franco, director of The Conference Board Consumer Research Center, said: “The erosion in CEO confidence is a reflection of the rapid and severe deterioration in economic conditions experienced in the final months of 2008. Looking ahead, CEOs remain extremely pessimistic about overall economic prospects in the first half of 2009.”

Corporate CEOs also expect inflationary price increases in 2009. The Conference Board’s consumer confidence index also slid, but not dramatically.

The next Design Leaders Confidence Survey will be conducted in mid-April 2009.

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

About AIGA

AIGA, the professional association for design, is the oldest and largest membership association for design professionals engaged in the discipline, practice and culture of designing. AIGA’s mission is to advance designing as a professional craft, strategic tool and vital cultural force.

Founded in 1914, AIGA is the preeminent professional association for communication designers, broadly defined. In the past decade, designers have increasingly been involved in creating value for clients (whether public or business) through applying design thinking to complex problems, even when the outcomes may be more strategic, multidimensional and conceptual than what most would consider traditional communication design. AIGA now represents more than 22,000 designers of all disciplines through national activities and local programs developed by 63 chapters and 240 student groups.

AIGA supports the interests of professionals, educators and students who are engaged in the process of designing. The association is committed to stimulating thinking about design, demonstrating the value of design and empowering success for designers throughout the arc of their careers.

For further information, please contact:
Jennifer Bender
Manager, communications and marketing
AIGA | the professional association for design
Tel 212 807 1990   Fax 212 807 1799