September’s data releases have only added to the puzzling performance of the UK economy, as the movements of key variables appear to continue to defy economic logic.

Unemployment is now at its lowest level in more than 40 years, but wage growth remains subdued. In the three months to July, unemployment dropped to 4.3%, its lowest level since 1975, while wage growth remained stubbornly low, at 2.1%.  Although economic theory tells us that as unemployment decreases, higher competition for labour puts upward pressure on wages, there’s little sign of reality conforming to theory.