Legal services sector recovering well according to ONS
The Office for National Statistics (ONS) Index of Services for June reveals that the legal sector is recovering well following the pandemic.
Although figures show that the services sector grew by only 1.5% between May and June this year, which is still below the 2.1% that was recorded in February 2020 and the last month of usual trading levels before the pandemic, the legal services sector has enjoyed revenues 25.7% greater than at the same time last year.
Figures also show that the legal services sector generated a monthly figure of £3.6bn, which is 23.9% higher than in May, and according to the Office for National Statistics was the third highest month of revenue activity on record.
The news follows announcements that several top 50 law firms enjoyed healthy profit figures for the year to 30 April, up by as much as 125% in some cases.
Julie Norris, regulatory partner at London firm Kingsley Napley commented on the ONS findings:
“After the blip of May, this is further evidence that legal firms are back on a path to growth after the initial shock of the pandemic. Our sector has risen to the challenge of the new normal, and reset above pre-pandemic levels.
Partners leading firms are likely looking forward to a period of sustained growth in coming months. We should all however remain aware of the risks in the market, to our staff, to our clients, and to our communities.”
The ONS report indicated revenue rises in 11 out of the 14 sectors in the index of services, with the largest growth being seen in the human health and social work activities sector, which had a rise of 4.5%. The professional, scientific and technical activities sector was the second largest contributor to growth, which also grew by 4.5%.
The ONS Index of Services, June 2021 report can be accessed here.