U.S. law firms project 5.3% revenue growth in 2022, down from a 14% increase in 2021, according to a Wells Fargo survey. Last year, law firms cashed in on record-breaking spikes in deals and other business transactions. Firms also benefited from growth in demand, rates, better collection of debts, and stronger control of expenses.

This year, firms that are diversified into areas such as bankruptcy and restructuring are best positioned for any economic difficulties. Litigation is another area that could take off as people sue more frequently and pursue a backlog of pandemic lawsuits. On the other hand, law firms will certainly be affected by inflation, increasing rates, and other effects of the economy.

More than 130 law firms participated in the survey, and 65 were among the 100 largest, according to Wells Fargo. The remainder were in the second 100 largest or regional firms.