Australian law firms offset softening demand in the first half of the financial year of 2023 (FY 2023) with a remarkable comeback in the second, reveals the 2023 Australia: State of the Legal Market Report issued today by the Thomson Reuters Institute.

In the first six months of FY 2023, Australian law firms experienced weakened demand growth of 1.3%, year-on-year. However, they rebounded in the second half with a 6% surge in demand, offsetting the sluggish first half, down by 3.4%. The rates that clients agree to pay grew by 5.3% year-on-year, compounding record-holding growth from the previous year.