Jacob Gershman of the Wall Street Journal Law Blog thinks there are better times ahead for law firms in 2014
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Law firms think the economy is healing and predict revenue gains next year, ending a gloomy year with a more positive outlook for 2014, according to a new survey of law firm managing partners.
Citi Private Bank just issued its Managing Partner Confidence Index, a survey of managing partners at 71 law firms, for the fourth quarter of 2013.
Here are some of the highlights: The overall confidence index is up 6 points from last quarter (on a scale of 1 to 200) but is still lower than a year ago. Confidence levels in the U.S. economy followed the same pattern.
Revenue forecasts are also brightening for the first time in months. About half of respondents expect growth below 5%, and more than a third are projecting gains exceeding 5%. The profit index also showed improvement. About three-quarters of the partners predicted growth in that area. And about two-thirds projected increases in demand, compared to 48% versus the previous quarter.
Amid the optimism, the partners said they were still facing steep discounting pressure and a slight increase in expenses.
The hiring indices showed mixed signs. Growth in equity partner headcount is projected to slow slightly. Respondents were more optimistic about growth in associates, with 56% of managing partners predicting increases. They also expected bring on board more non-associates.
