Traffic Volume Increases in Dec. for Seventh Month

The Federal Highway Administration reported today that travel on all roads and streets in the U.S. for the month of December was estimated at 243.4 billion vehicle miles, which is 0.6% above the same month last year, and almost 2.6% higher than the traffic volume in December 2008.  What makes those December traffic increases especially noteworthy is that the price of gas in December last year averaged $2.99 per gallon, which was almost 15% above the December 2009 price of $2.61, and 77% above the December 2008 price of $1.69 (data here). Consumers and commercial drivers appear to be able to absorb the higher gas prices and still continue to increase driving as the economic recovery strengthens.  In fact, traffic volume in December 2010 set a new record for monthly vehicle-miles of travel in that month.

The December traffic increase from its year ago level was the seventh consecutive monthly increase starting in June 2010, and the eighth increase in the last nine months starting in March 2010.

On a moving 12-month total basis (to smooth out the monthly seasonal variations), the annual vehicle-distance traveled through December 2010 was 3,000 billion miles, the highest 12-month total since July 2008, almost two and-a-half years ago (see chart above).

Following a sharp decline in U.S. traffic volume (moving 12-month basis) that started in late 2007 and ended at a cyclical low in May 2009, traffic volume has been gradually increasing as both personal and commercial travel on U.S. roads and highways have rebounded (see graph above and truck tonnage post here).  The ongoing improvements in traffic volume since the summer of 2009, which is taking place despite rising gas prices, indicate that the economic recovery is real, sustainable and gaining momentum.