Law firm litigation practices were once again a leading driver of strong economic performance in the third quarter of 2024. And with corporate practices seeing a comparable rise in demand growth, the industry is poised to close the year out on strong financial footing.

That’s the quick takeaway from the latest Law Firm Financial Index, which tracks the drivers of law firm profitability from quarter-to-quarter. The index, published by Thomson Reuters, reached its second-highest level ever in the third quarter, falling behind only the transactional-fuel boom of early 2021.

Here’s how our colleague Andrew Maloney on Law.com’s business of law team summed up the results:

Already in a position of strength in 2024, Big Law firms continued to pick up financial momentum in the third quarter, according to new industry reports, with firms themselves optimistic about performance and profitability heading into the end of the year.

Through September, firms saw “incredibly broad” demand growth and another rise in productivity, even as they increased head count, notching their seventh straight quarter of financial gains and continuing a trend of looking “fundamentally stronger than in any period in recent history,” according to the Law Firm Financial Index, published on Monday.