The large law firm market has witnessed a growth in demand and rates, according to the Thomson Reuters 2020 Q1 Peer Monitor Economic Index (PMI), which showed a four-point increase, reaching a score of 57.
Thomson Reuters’ PMI is a composite index of law firm market performance which uses real-time data drawn from major law firms in the U.S. and key international markets.
The PMI data has exhibited an increase in the demand by 2 percent while the rate growth rose by 4.1 percent, although this was primarily concentrated among the largest firms.
According to Reuters, in the first quarter, corporate work and real estate were among the strongest practices, while litigation was slightly positive. IP practices and tax work were generally lower.
Mike Abbott, vice president of market insights and thought leadership at Thomson Reuters, said: “While law firms are currently trying to come to grips with the COVID-19 situation, the market is coming off of a strong base.”
It needs to be noted that the bulk of the social and economic impact of the outbreak in the U.S. only began in the last few weeks of the quarter.
Reuters added that productivity fell as the demand was not sufficient to overcome continued growth in headcount. Direct expenses rose in the first quarter, owing to the growth in headcount, while overhead expenses fell.
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