Peer Monitor Economic Index falls in first quarter
The Peer Monitor Economic Index (PMI), which measures the relative health of the legal marketplace, fell six points in the first quarter to a reading of 50. A PMI of 65 or greater indicates strong law firm market performance.
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 for law firm services weakened in the first quarter, although law firms saw some success in restraining costs.
“The first quarter turned in a fairly weak performance across the board,” said Mark Medice, program director of Peer Monitor. “Even some of the practices that had been relatively strong recently, such as transactional practices, have gotten off to a weak start in the first quarter. However, a more positive development is that firms are showing increasing success in controlling costs. Firms are focusing on improving efficiency, which is helping support profitability. In addition, it will leave firms well positioned to make significant gains if demand improves through the remainder of the year.”
PMI is produced by the Hildebrandt Institute, part of Thomson Reuters.