Pay awards remain low as firms wary of economy

Pay
awards in the manufacturing sector have remained low because many firms are
wary of a faltering economy, according to CBI research.

The
latest Pay Databank survey shows the average pay awards in manufacturing were
2.6 per cent in the three months to September.

This
compares to 2.7 per cent in the previous quarter and 2.8 per cent a year ago.

Manufacturing
firms blamed an inability to raise prices as the key factor keeping pay down,
closely followed by low profits.

The
CBI’s chief economic advisor Ian McCafferty said manufacturing was under
pressure and fears that the downturn would get worse were increasing.

www.cbi.org.uk

By Ross Wigham

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