Take-home pay falls in Aug as economy slows

LONDON (Reuters) - Take-home pay fell in August by its largest amount since January as a weakening economy dented workers' bargaining power, a survey showed on Wednesday.

Pay processors Voca said its pay index dropped to 4.1 percent last month from 4.5 percent in July.

"This month's figures are a clear indication of the conflicting forces affecting pay growth," said Richard Cooper, Voca's marketing director.

"Whilst employees' demands for wage increases to combat the higher cost of living are pushing up pay inflation, employers are looking at the weakening economy and attempting to restrain wage growth."

Manufacturing pay growth eased to 4.3 percent from a two-year high of 5.4 percent in July. Services pay inflation picked up by 0.1 percent to 3.9 percent.