WSJ reported yesterday that the US economy “is sticking the soft landing,” i.e., the economy, which is sending “repeated mixed signals,” is “averting the long-anticipated recession” while still steadily cooling as the Fed fights inflation.

In this environment, what do leading firms with top tech clients say about the economy, tech, clients, and the legal market? WSGR, Orrick, and Perkins Coie said the following to American Lawyer/The Recorder:

• Economic uncertainty and the Ukraine war continue to impact the need for legal services. WSGR managing partner Doug Clark says he still “worr[ies] about the effect of the war in Europe and other macroeconomic conditions.” Similarly, Orrick’s CEO Mitch Zuklie says, “This year is complicated, not only because of the short-term economic situation.” Other concerns include geopolitical risk and the risk of AI.
• Transactional practices remain soft. Orrick saw that activity at tech companies “started to slow near the end of last year and intensified in the second quarter of 2023, which was a big factor in the firm’s decision to conduct layoffs in June.” Zuklie says, “Things haven’t fallen off a cliff, but they haven’t been on fire.”
• What is strong? Litigation, regulatory, and IP for WSGR, Perkins Coie, and Orrick.
• Some positive signs ahead. WSGR “observed some early signs of recovery in private financings, equity investments and M&A work.” Clark says, “We’re seeing an uptick across a very wide spectrum of clients in terms of industry sector, size and business. We have a very broad practice and a distributed client base, which is driving the increase in activity.”
• M&A is mixed for WSGR.  Clark notes “episodic” M&A activity among larger companies and interest from smaller companies, but that large M&A deals are down.