Average manufacturing pay deals have remained ‘static’ at 2.4 per cent in recent months, EEF figures show.
The Engineering Employers Federation (EEF) said one of the busiest periods of wage negotiations for manufacturing companies has passed with no sign of inflationary pay settlements.
“The figures will help allay fears that sharp increases in costs to individuals are translating into significant wage demands, reflecting continued uncertainty around prospects for the labour market and the wider economy,” said the EEF.
A study of almost 300 agreements in the three months to March showed average deals of 2.4 per cent, while the number of pay freezes fell slightly but still remained at just over one in eight settlements.
EEF chief economist Lee Hopley said: “The Bank of England will be relieved that concerns around the pass through from high inflation to greater upward pressure on pay have not materialised as yet.
“But the April pay round will be another important marker for policymakers wary of how pay deals might evolve through this year.
“With most pay data within the monetary policy committee’s comfort zone it appears that for now economic uncertainty and labour market concerns continue to be the main driver of agreements.”