Law Firms Jacking Up Rates, Demand Flat, Citi Survey Finds
Bloomberg Law reports that law firm performance dropped off in the third quarter, as demand softened and collections started to lengthen, according to a new report by the Citi Private Bank Law Firm Group.
The survey of 183 law firms found that revenue growth fell to 3.6 percent through the first three quarters, down from 3.7 percent at this time last year, writes Gabe Friedman. A Citi senior senior advisor said that the growth was driven by increased billing rates, and not demand or other factors, which may not bode well for law firms.
He also said that law firms increased billing rates by an average of four percent. That increase compares to a 3.2 percent rise at this time last year. It is more typical to see a 3 to 3.5 percent increase in billing rates, he said.