Friday, March 28, 2014

Average New Vehicle MPG rises again in FEB

The University of Michigan reported  fuel economy for FEB 2014 new car sales, which rose to a new highs.
Since total miles driven has remained flat for almost four years now, the rapidly improving fuel economy of new vehicles should increasingly result in lower domestic gasoline consumption.  US gasoline sales have reflected this so far (see the 12 month average gasoline sales graph below).  But alternatively we may also see an increase in miles driven, as employment picks up and the economy improves generally.