- Take Home Pay growth in the FTSE 350 sector fell to 2.2% in the three months to the end of October.
- Services sector take home pay growth slowed slightly year-on-year in the three months to October – down to 2.5% from 2.7% in the three months to September
- Annual take home pay in the manufacturing sector fell by 0.7% in the three months to October, following several months of slowing growth
- However the Public sector experienced annual take home pay growth at 0.1% for the first time since March 2013
Despite recent signs of improvement in the UK economy the latest findings from the VocaLink Take Home Pay Index show that wage growth has slowed.
The monthly index – from the company that processes the salary payments for more than 90% of the British workforce – shows that pay growth in FTSE 350 companies fell to 2.2% in the three months to the end of October.
Services and Manufacturing sector wage growth also declined in October to 2.5% and -0.7% respectively.
There is a chink of light for public sector wages, with growth returning for the first time since March, but the average take home wage for a public sector worker grew by just 0.1% in October, following six consecutive months of decline.
Commenting on this month’s findings, David Yates, Chief Executive Officer at VocaLink said:
“This month’s Take Home Pay Index highlights that across multiple sectors wage growth remains sluggish. While inflation has remained steady for over a year, rising prices of essentials are putting pressure on households and recent increases in domestic gas and electricity bills mean household spending continues to be squeezed.
With the pace of wage growth slowing, there may be concerns about the prospect of consumer spending worsening as retailers head toward the crucial Christmas sales period.”
For further details and a copy of the report, please visit VocaLink’s website.