MANUFACTURING pay settlements have fallen to 2.5 per cent, according to the Engineering Employers' Federation.

The manufacturers' organization measured the average level of pay deals reported by engineering and manufacturing companies for the three months to the end of July. Similar periods in 2003 and 2002 both recorded rises of 2.7 per cent.

This was down from the figure for the two previous three month periods to the end of May and June respectively of 2.7 per cent.