A new survey conducted by Citi Private Bank’s Law Firm Group claims that managing partners at law firms are showing more optimism about 2014 compared to the end of the third quarter.
A round of questions are presented to managing partners and then measured on the Law Watch Managing Partner Confidence Index from the bank. The points can reach as high as 200, which is total confidence. Points at 100 mean neutral opinions. The survey discovered that overall confidence comes in at 109 on the scale. This is six points higher compared to the survey taken in September, according to The Am Law Daily.
There were 71 law firms surveyed by the bank, with 25 of them coming from The Am Law 200. Four of them are located in the United Kingdom, 24 come from The Am Law Second Hundred, and 15 are firms described as niche by Citi.
“They’re thinking 2014 will be a better year than 2013,” Gretta Rusanow said. Rusanow is a senior client adviser. Rusanow believes that the reason for the confidence increase comes from more work in transactions of late. “There’s a general sense that as the economy improves that will translate into continued improvement in demand.”
In the same survey, the profit index results hit at 96. Ten percent of those who responded to the survey are preparing for a decrease in their firm’s profits for 2014. Fifteen percent are expecting the same profits in 2014 as 2013. Fifty-one percent of respondents expect growth that will register under five percent and 24 percent of respondents believe they will experience five-percent growth.
When it comes to demand, managing partners saw their confidence levels hit 136. Sixty-seven percent of respondents to the survey estimate that their demand levels will increase. The majority of the law firms surveyed expect an increase in revenue for 2014. Of those surveyed, only 16 percent of the firms said that revenue will stay at the same levels or decrease in 2014.