Average pay rises in manufacturing firms rose slightly to 2.3 per cent in the last few months.

Deals for the quarter to August were 0.1 per cent higher than the three months to July.

The number of firms freezing pay fell and fewer companies deferred wage rises, according to the Engineering Employers' Federation (EEF).

David Yeandle, EEF deputy director of employment policy, said the rise was not inflationary and should not concern the Bank of England's monetary policy committee at its next meeting to decided the level of interest rates.