Legal Current

The Hildebrandt Baker Robbins Peer Monitor Economic Index (PMI) was down slightly in the second quarter of 2010. It measured a 54, down one point from the first quarter. A PMI of 65 or greater indicates strong law firm market performance.

“Essentially it’s been flat for at least the last three periods which means the industry is having a tough time growing this profitability absent better performance in the top line,” said Mark Medice, program director of Hildebrandt Baker Robbins Peer Monitor. “Certainly if you look at demand patterns, pricing pressures and then the relative performance in terms of practice areas we’re starting to see at least some change… …The demand levels are starting to shift with some amount of new emphasis on transactional practices.”

Demand for law firm services was largely flat for the quarter and rate growth was weak. Overall, cost reductions were unable to improve firm profitability in the face of sluggish demand and rate growth.

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.

After showing slight positive growth earlier this year, demand in London was flat for the quarter. Boston was the strongest major market, with demand up two percent. Washington, D.C., rebounded in the second quarter, with one percent higher demand compared with a year earlier. Chicago ended its string of six consecutive quarters of demand growth, down one percent. New York and San Francisco were also off one percent. Los Angeles was down two percent in the second quarter but has been showing steady improvement since last year.

You can listen to Mark Medice talk about the latest PMI in this Legal Current interview edition podcast:

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For more information about the PMI, and to review the latest PMI report, click here or visit peermonitor.hbrconsulting.com.

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Posted by Kevin Hunt in: In Business | Industry trends |