Law Firm Economics

Thomson Reuters? Peer Monitor Economic Index (PMI) tracks legal-industry trends nationwide. The index analyzes law firm responses to survey questions on hourly rates, demand for services, productivity, expenses, and overhead. The rating system is based roughly on a scale from 1 to 100, with higher numbers indicating higher hourly rates, more demand for services, and so on.

Overall, national PMI ratings have been languishing since the fourth quarter of 2007. And third-quarter ratings in 2008 inched down further?to 50 from 52 in the previous quarter?with even worse ratings in three California regions (Los Angeles, San Francisco, and Silicon Valley). Orange County was the exception in California: at 59 it was the only region to come in above the national index.

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