No wage inflationary pressures building up in manufacturing

Release date: 18/10/2006

There are no signs of wage inflationary pressures building up in manufacturing as pay settlements continue to remain stable at 2.8%, according to the latest information from EEF, the manufacturers' organisation.

The average level of settlements recorded for the three months to the end of September 2006 was 2.8%. This was the same as the revised figures for the three previous three-month periods.

During the three months to the end of September, the number of companies reporting that they had frozen pay fell slightly to 4.5% of all settlements. The number of companies reporting that they had deferred their pay settlement also fell to just over 0.5% of all settlements, the lowest figure recorded for more than two years.

Commenting on these latest figures, David Yeandle, EEF Deputy Director of Employment Policy, said:-

"The continuing stability of pay settlements in manufacturing shows that there are no wage inflationary pressures building up that should concern the MPC. “

Settlement level - per cent

Number of settlements

Zero (pay freeze)

8

0.01-2.00

11 (10 at 2 per cent exactly)

2.01-3.00

123 (66 at 3 per cent exactly)

3.01-4.00

31 (6 at 4 per cent exactly)

4.00 or more

2

The October Pay Bulletin contains information on 179 settlements covering 20,727 employees. Of these, the average settlement level was 2.9% in July 2006, 2.7% in August 2006 and 2.8% in September 2006 although the figures for August and September 2006 were based on relatively small samples of settlements. These figures may be subject to revision to take into account settlements for this period that have not yet been received.

ENDS

Notes for editors
further information:
Mark Swift
Media & Campaigns Manager
t: 020 7654 1576
e: mswift@eef.org.uk

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