Biglaw

Stats Of The Week: Meh Midyear Report For Biglaw

The business of Biglaw is tepid at midyear.

By  
on

stat imageAs noted earlier this week, the Citi Private Law Firm Group has released its report on the state of the legal industry at the halfway point of 2016. The news was resoundingly lukewarm: Q1’s surprisingly robust demand growth has faded, although the general picture compares favorably to 2015. Some of the key metrics cited:

  • Demand increased a mere 0.3 percent for the the first half of 2016.
  • Revenue grew 4.1 percent (up from the 3.3 percent growth seen in the first half of 2015).
  • Growth in net income and PEP has exceeded first-half 2015 levels, attributable to expense management and rate increases.
  • Expense growth of 3.1 percent, driven by 3.3 percent growth in overhead and 3 percent in compensation expenses.

Regarding that last point, the report’s authors blandly — and ominously — note that “the increase in associate salaries which many firms implemented in July will put upward pressure on second-half expenses.”

Brian Dalton is the director of research for Breaking Media. Feel free to email him with any questions or comments.

Sponsored

Topics

, , , , , , ,