Pay deals in engineering and manufacturing firms remained at a historically low level.

This according to figures from the Engineering Employers' Federation (EEF).

For the three months to the end of May, the average settlement was 2.1 per cent, the same as the previous three months.

Nearly one in four firms had a wage freeze, according to an analysis of deals affecting more than 55,000 employees.

The EEF said the figures showed it would be premature for the Bank of England's monetary policy committee to raise interest rates from the present four per cent.