ArtTactic Releases Contemporary Art Survey

Anyone who has been following the art market or the AW Blog is aware of the downturn that has hit the fine art market, with an added emphasis on major losses within the contemporary specialty area. ArtTactic just released its confidence report for contemporary art and it is not positive. With an 81% decline in confidence and many believing it will be 3-5 years before contemporary art rebounds. The downturn in contemporary art in the 4th quarter was also documented by the RICS survey, posted on the AW Blog yesterday.

From the ArtTactic website:

The ArtTactic US & European Contemporary Art Market Confidence Indicator for December 2008 has dropped to its lowest level since it was launched in May 2005. The ArtTactic Art Market Confidence Indicator has dropped to 10.5 from 56 - a 81% drop since May 2008. The drop in confidence comes on the back of 40% drop experienced in November 2007, shortly after the outbreak of the credit crises. The current reading implies that pessimists outweigh optimists in the Western contemporary art market by a ratio of 10:1.

ArtTactic reports The drop in confidence comes on the back of 40% drop experienced in November 2007, shortly after the outbreak of the credit crises. The current reading implies that pessimists outweigh optimists in the Western contemporary art market by a ratio of 10:1.
The ArtTactic report continues Recovery will take years: 52% of the respondents believe it will take more than 3 years for the market to start picking up, and more than half of these believe it could take more than 5 years.

- Bottom falls out of the high-end of the market: The confidence has weakened in all of the higher price segments (particularly above 0,000) since the last reading in May 2008

- Risk rating at an all-time high: The Risk Barometer stands at 8.3, significantly higher (22%) than last reading in May 2008, suggesting a heightened level of uncertainty in the art market, both in terms of the potential value correction and the duration of the downturn.

To review the ArtTactic figures, click HERE.