A survey by the EEF reveals that pay growth in the manufacturing sector rose to 2.1% in the three months to the end of April, passing the 2% mark for the first time since November 2015 (the figure for the three months to the end of March was 1.8%).

Four out of 10 settlements were agreed within the 2-3% range, which was the highest proportion since September 2015.

Hela Mrabet, senior economist at the EEF, said: “The share of pay deals at or below 2% fell accordingly to almost half of settlements agreed between February and April.

“However, deals above 3% remain few and far between. April, the second major bargaining round of the year, confirms the upward trend in pay-settlement levels across manufacturing in response to the continued rise in inflation.

“The strong momentum in wages within manufacturing also contrasts with the pace seen in the economy as a whole, where growth in earnings fell to 2.1% in the first quarter, from 2.3% in the final quarter of 2016.

“As business conditions continue to surprise on the upside, the sector enjoys tail-winds from a stronger global economy, and with the pressure from past surges in input costs easing somewhat, manufacturers are also offering higher pay increases than they did earlier this year.

“Caution is not completely shrugged off however, as most settlements are still running below consumer price inflation.”

The pay survey included 77 settlements, covering 17,900 employees.