Law Firm Profitability Was Up In 1st Quarter

The year got off to “a fair start,” according to Thomson Reuters, based on in its Peer Monitor Index. The PMI rose 4 points to 56 in the first quarter. The company defines the PMI as a composite index score representing the quarter-over-quarter change in drivers of law firm profitability, including rates, demand, productivity and expenses. Positive factors driving firm profitability will produce a higher score. Corporate transactional work was an especially strong area in the first quarter, while litigation was down. Patent work cooled off relative to last year but was still up. Standard billing rates were up 3.4 percent, while direct expenses rose 2.2 percent, the highest rate since the 4th quarter of 2012.