Pay
awards in service sector companies have fallen, claims CBI research.
The
Pay Databank Survey reveals that pay awards in service firms averaged 3.7 per
cent in the three months to September, compared with 4.1 per cent in the three
months to June.
The
survey finds that four out of 10 service companies cite the need to recruit and
retain staff as the main factors determining pay awards.
Manufacturing
pay awards edged up slightly, averaging 2.9 per cent in the three months to
September compared with 2.7 per cent in the previous three-month period.
"Manufacturing
pay awards remain low and are being held back by pressure on prices and the
global slowdown," said Ian McCafferty, CBI’s chief economic advisor.
"The
fall back in service sector pay indicates that the slowdown is spreading to
other areas. It suggests there is little pressure on inflation which should
reassure the Bank of England."
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The
survey polled 1,400 private sector awards for 1.5 million employees each year.
