City partners have seen the lowest levels of M&A activity since early 2003 during the first half of this year, with few optimistic of a significant recovery any time soon.

Figures from Legal Week's data provider, Mergermarket, show that in Europe there were 1,449 deals during the first half of 2009 worth $169.1bn (£102bn), compared with 3,175 deals worth $504.9bn (£315bn) during the same period in 2008 and 3,365 deals worth $846bn (£514bn) during the first half of 2007.

Activity levels worsened markedly between the first and second quarters of this year, falling from 771 deals worth $112.5bn (£68.3bn) during the first three months down to 678 deals worth just $56.6bn (£34bn) in the second quarter.

While magic circle firms Freshfields Bruckhaus Deringer and Linklaters pressed their way to the top of the European tables, the figures demonstrate just how few deals there were to go round, with energy and infrastructure one of only a handful of bright spots.

Alan Paul, corporate partner at Allen & Overy, which placed third in the volume rankings, said: "This first six months have been patchy. The firm has done a few reasonable deals but it has been unpredictable. It is pot luck as to which deals happen."

Michael Walter, corporate head at eighth-placed Herbert Smith, added: "Valuations are still volatile – purchasers are afraid of overpaying, sellers are worried about underselling and it is looking like that will have a depressing effect on M&A work for the foreseeable future."

Clifford Chance, which won roles on five of the 12 largest deals in Europe, including the $13.5bn (£8.2bn) sale of Barclays' global investment arm, was one of few firms optimistic the market may have bottomed.