Reuters: High Demand, High Rates Put Firms on Track for Profit Boost

Reuters' August 10 analysis of the Thomson Reuters LFFI Q2 report quantifies the demand and rate environment more specifically: demand (measured in hours worked) rose 3% in Q2, while billing rates increased more than 7% year-over-year. Real estate practices led demand growth at 3.6%, followed by corporate at 3.5% and labor and employment at 3.4%; litigation rose 3% and intellectual property gained 2.8%. Technology spending was among the fastest-growing cost categories, up 11.6% year-over-year — consistent with Citi's finding that AI investment is a primary driver of overhead expense acceleration. The report projects 2026 will be the busiest year since 2021 if Q3 demand holds.