Peer Monitor Index Slumps in Second Quarter
The large law firm market was hit by a one-two-three combination punch of slumping demand, rising expenses and falling productivity in the second quarter. The Peer Monitor Index report saw demand for law firm services fall for the first time since 2013. While rate growth accelerated slightly, it was not nearly enough to make up for the drop in demand. Despite the falling demand, firms accelerated their hiring, resulting in rising costs and falling productivity.
While demand year-to-date is still positive, many of the PMI key performance indicators are now trending negatively, raising concerns for the remainder of the year.