Wow! Americans are really driving less.
I just found this chart on Econbrowser, one of my new favorite blogs.
U.S. vehicle miles traveled in billions of miles, 12-month moving average. Source: Federal Highway Administration.
It would seem that Americans have been driving less for the last seven consecutive months. I encourage you to read the full post for details, but it seems that the combination of a slowing economy and high oil prices have found the limits of consumer willingness to drive. I'd like to see population-adjusted data, but it would probably just make this phenomena even more dramatic.
It's nice to know that we can change our habits a little if we really need to. But will it last? Can the economy improve in an environment of historically high oil prices? Will oil prices decline significantly, supercharge the economy, and bring back the Hummers doing 60 minute commutes at 80MPH?
I don't have the answers to those questions. But we are clearly at a unique junction in economic history. Changes like this are a big deal. Fasten your financial seatbelt, tune into CNBC, and look sharp out there.
