The results of the Hildebrandt Baker Robbins Peer Monitor Economic Index (PMI) for the fourth quarter of 2009 are in, showing an increase for the third straight quarter.
The PMI rose nine points to a reading of 55. A PMI of 65 or greater indicates strong law firm market performance.
The PMI is a composite index of law firm market performance using real-time data drawn from major law firms in the United States and key international markets.
Demand and worked rate growth remain weak in the Q4 PMI, and much of the strength resulted from strong cost controls and improved productivity, contributing to firm profitability.
Demand, as measured by billable hours, stabilized in the fourth quarter at roughly the same level as a year earlier. Demand strengthened throughout the second half of 2009, but remains well below the levels of 2007.
London was up five percent in growth. The top major market in the United States was New York, up two percent from a year earlier. That reflects improvements in litigation and corporate transactional work. Chicago was up one-half of a percent. Boston and Washington, D.C., were flat in the fourth quarter. Philadelphia, Los Angeles, San Francisco and Silicon Valley were among the weakest markets.
For the first time since PMI has been tracking data three years ago, attorney headcount contracted, down three percent in the fourth quarter. As a result, direct expenses fell more than five percent – the steepest decline PMI has recorded.
You can review the Q4 2009 PMI report here.
Posted by Kevin Hunt in:
In Business | Law firm business |
[...] for a recovery in the legal market this year. The latest PMI for the fourth quarter of 2009 (which we blogged about last month) shows some encouraging trends in demand, however prospects for growth remain [...]