Manufacturing wage settlements have crept back towards average historical levels, according to data from EEF, the manufacturers’ organisation, and engineering recruiter JAM Recruitment.

EEF’s pay data for the quarter to the end of April 2011 shows that the average pay settlement for the period crept 2.5%, up from 2.4% for the three months to the end of March 2011.

However, despite the small increase, roughly eight in 10 settlements were below 3%, while just under 14% of companies still operate with pay freezes.

Lee Hopley, EEF chief economist, says: “We have now been through the two single busiest months for wage negotiations and there remains little evidence of significant upward pressure on pay. Despite the small increase we are only returning to the level of settlements we would expect to see by historical standards.”

John Morris, chief executive of JAM Recruitment, adds: “Assertions that this month’s average pay settlement, the highest since January 2009, is an indication of sustained wage inflation in the manufacturing sector may well be premature, but it is heartening that after two years of fluctuation, the majority of pay increases appear to have settled around modest levels.”