Despite the rising cost of living, regional manufacturing employers are witnessing little pay pressure during the current bargaining period, although the number of pay freezes has reduced, according to EEF, the industry body.

A survey by EEF and JAM Recruitment shows that pay pressures remain absent in as manufacturing companies keep a tight hold of costs in the face of difficult economic conditions.

According to the pay survey of more than 200 companies, the average settlement level for the three months to the end of February was 2.3 per cent, unchanged from the previous three-month period, with almost 90 per cent of settlements agreed at three per cent or less.

The proportion of pay freezes fell slightly to 11 per cent of settlements and the level of deferments fell to just under seven per cent.

EEF regional director Andy Tuscher said: “The main bargaining period for manufacturing companies is passing with no evidence of pay pressures despite the increase in the cost of living. These figures continue to suggest a cautious outlook for many companies who are bearing down on their internal costs.”

John Morris, of JAM Recruitment, said: “There are signs that 2013 will be a more positive year for the industry and hopefully the employee and corporation tax cuts announced in the budget will deliver accelerated growth.”