UK legal industry revenues jump almost seven per cent despite stagnant economy
The UK’s legal industry jumped 6.8 per cent in September 2023 to £4.01bn, up from £3.75bn recorded in August, according to the latest Office for National Statistics (ONS) statistics out today.
This growth is against the backdrop of an economy has just narrowly avoided a recession after GDP unexpectedly had no growth in the third quarter of the year.
Year-on-year, the legal industry is up 9.5 per cent on September 2022 revenues, which were £3.66bn. According to City law firm, Kingsley Napley, this was the highest September revenue figure on record for the industry.
Julie Norris, partner at Kingsley Napley said: “This jump in revenues is above typical seasonal trends so should be a welcome sign of health in the industry. However with capital markets in flux and comparator industries such as accounting cutting costs, firmwide leaders should keep a close eye on the operational, financial, and regulatory aspects of their businesses.”
This comes as news that activity in the legal jobs market is up. City PM reported that new data shows September and October had the most recorded partner moves in a single two-month period.
The overall services sector, which includes the legal industry, rose by 7.7 per cent in September 2023 to £243.4bn,
While the accounting industry revenues jumped by 13 per cent in the same month to £3.86bn. Its latest figures represent an increase of 4 per cent on September last year.
Despite that growth, companies that are well-known in the accounting industry, are suffering from huge job cuts over 2023. The Big Four has put some 1,800 jobs on the chopping block this year, alongside other cost-cutting measures such as pay freezes and cutting bonuses.
Julie Matheson, partner at Kingsley Napley said: “The accounting industry has come out of the summer break seemingly refreshed. Despite widespread coverage of cuts following challenges in M&A markets, September’s figures show firms overall are doing well despite continued macroeconomic instability.”