Service sector pay rises decline as firms feel the pinch

Pay
increases in the service sector slowed significantly in the three months to
October and remained low in the manufacturing industry.

Research
by the CBI reveals that pay awards in the service sector averaged 2.8 per cent
between July and the end of September, compared to 4.4 per cent for the
previous three months.

In
the manufacturing sector, pay increases to October fell to 2.6 per cent, from
2.9 per cent between April and the end of June.

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Ian
McCafferty, the CBI’s chief economist, said, "Pay awards are clearly
starting to decline as firms feel the pinch of the economic slowdown."

By Ben Willmott