The boom in legal services has reached its peak – official | New

An unprecedented boom in demand for legal services in the UK has already peaked, according to official figures, with a further decline in activity forecast for the rest of the year as the recession looms.

Turnover in the UK legal sector totaled £3.59bn in June, a 10% increase from May, according to data from the Office for National Statistics released this month. But the June figure was slightly down from the £3.6bn the sector posted for the same month last year. June 2021 was the third best performing month on record.

The numbers come as no huge surprise given the financial outperformance of many large companies at the height of the pandemic, when demand for advice was high and overhead costs at record highs due to shutdowns. Unrelated trade figures for the United States reported by Thomson-Reuters the past week has shown that the biggest companies are also hurting the profits from the exorbitant pay rates now imposed by associates on both sides of the Atlantic.

Julie Norris, regulatory partner at Kingsley Napley, who reports the ONS figures, said: ‘Interestingly the June 2022 figures are down slightly from June 2021 which was the third worst month. record high for industry revenues. We don’t see new highs this year. The peak in performance has passed and given the threat of recession, the question on the minds of executives right now is whether earnings will hold steady or see steeper declines. Prudent cost and risk management is certainly the rule of the game in today’s uncertain environment.

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