by Bill McBride on 1/24/2013 04:11:00 PM
Thursday, January 24, 2013
The Department of Transportation (DOT) reported:
Travel on all roads and streets changed by +0.8% (1.9 billion vehicle miles) for November 2012 as compared with November 2011. Travel for the month is estimated to be 238.8 billion vehicle miles.The following graph shows the rolling 12 month total vehicle miles driven.
Cumulative Travel for 2012 changed by +0.6% (16.7 billion vehicle miles). The Cumulative estimate for the year is 2,702.9 billion vehicle miles of travel.
Traffic in the Northeast was down 0.9%, but there were gains in every other region. The rolling 12 month total is still moving sideways.
Click on graph for larger image.
In the early '80s, miles driven (rolling 12 months) stayed below the previous peak for 39 months.
Currently miles driven has been below the previous peak for 60 months - 5 years - and still counting.
The second graph shows the year-over-year change from the same month in the previous year.
Gasoline prices were up in November compared to November 2011. In November 2012, gasoline averaged of $3.52 per gallon according to the EIA. Last year, prices in November averaged $3.44 per gallon.
However, as I've mentioned before, gasoline prices are just part of the story. The lack of growth in miles driven over the last 5 years is probably also due to the lingering effects of the great recession (high unemployment rate and lack of wage growth), the aging of the overall population (over 55 drivers drive fewer miles) and changing driving habits of young drivers.
With all these factors, it might take several more years before we see a new peak in miles driven.
Posted by Bill McBride on 1/24/2013 04:11:00 PM