America's Highways Come Alive as Cheap Gas, Job Growth Spur Driving
Americans are increasingly taking to the highways and byways as lower gasoline prices and rising employment spur a “road trip recovery,” according to Nicholas Colas, chief market strategist at Convergex.
The chart below tracks the year-to-year percentage changes in the number of vehicle miles driven, as compiled by the Department of Transportation. This year’s results show an average increase of 3.8%, which would be the biggest gain for a full year since 1989. The growth follows an upswing in travel since 2009, as the chart illustrates.
“Silicon Valley better get cracking on those self-driving cars, hoverboards and whatever else they have in mind,” Colas wrote Oct. 14 in a report, “because 2015 is proving to be a breakout year for American driving patterns.”
Cheaper fuel appears to be prompting travelers to drive rather than fly, the New York-based strategist wrote. Pump prices for regular gasoline averaged $2.49 a gallon across the United States through September, according to data from motorist group AAA. The average fell from $3.51 a gallon in the same period of 2014.
Job gains also are contributing to the growth in driving, he wrote, citing survey results from the Commerce Department that show 85% of Americans drive to work. The economy added 1.8 million workers in the first nine months of 2015, according to the Labor Department.
“The drop in gasoline prices makes driving more affordable, and Americans are simply driving more,” Colas wrote. “Now, if they would just stop long enough to spend some money, the U.S. economy might also hit its stride.”
