The law firm market is showing encouraging signs of stabilizing. The Hildebrandt Peer Monitor Economic Index (PMI) rose two points to a reading of 46 in the third quarter of 2009.
While demand and pricing remain weak, there are increasing signs that demand for legal work is strengthening, particularly in litigation. We view that as an important measure because it represents, for many firms, a sizable portion of their workload.
Rate growth for worked hours, however, remains weak and revenues are basically flat year to date. Firms continue to have success in controlling expenses. Both direct and overhead expenses continue to drop, helping firms sustain profitability.
We expect firms will continue to be conservative in managing headcount even if the overall economy continues to improve as we enter 2010.
You can listen to a Westcast podcast discussion about the latest PMI data, with me and host Leonard Lee.
And a copy of the full third quarter PMI report can be downloaded here.
For more information about PMI, you can contact me via email at mark.medice@thomsonreuters.com.
Mark Medice
Program Director
Hildebrandt Peer Monitor
Posted by Mark Medice in:
In Business | Law firm business |
