U.S. Transportation Secretary Rodney E. Slater Says U.S. Economy is Growing Faster Than Transportation Energy Use

Contact BTS 13-00 Dave Smallen 202-366-5568

Tuesday, September 26, 2000 -- U.S. Transportation Secretary Rodney E. Slater today released a report by the Bureau of Transportation Statistics indicating that energy use in the growing transportation sector is rising more slowly than the Gross Domestic Product (GDP), suggesting that the economy, particularly transportation, may be more resilient to oil price shocks.

The new report shows that energy use by the transportation sector has risen only 2.2 percent in the past year, compared to 5.2 percent growth in the GDP. Since 1979, U.S. real GDP grew 3 percent annually, while transportation energy use grew just 1.1 percent per year. Secretary Slater released the energy usage information as part of the first Transportation Indicators-a new monthly update of critical transportation information that details the impact of transportation on the nation's economy and society.

"Tracking significant transportation trends such as energy use is a key part of the visionary and vigilant Department of Transportation's plan for transportation in the new century and the new millennium," Secretary Slater said in New York. "The Transportation Indicators will improve the knowledge base for transportation to produce better transportation decisions in the public and private sectors."

Dr. Ashish Sen, BTS Director, said, "By tracking many trends in transportation and related economic sectors, Transportation Indicators will help pinpoint areas for action now and in the future."

Transportation Indicators provides information on more than 60 trends in the areas of safety, mobility, economic growth, human and natural environment and national security. The monthly report, which is available at www.bts.gov, provides information to address specific transportation issues and to assist in the effort led by BTS to make transportation information more accurate, reliable and timely.

Trends highlighted in this month's Transportation Indicators include:

• 9 per cent growth in air travel and 10 per cent growth in international waterborne container traffic in one year
• a long-term rise in retail sales combined with declining inventories, indicating more demand for reliable transportation
• a large jump in both imports and exports in June, also pointing to increased demand on transportation, especially in and around ports
• higher world crude oil prices, leading to higher fuel costs
• greater price increases for air and water transportation than for motor freight, pipelines and rail
• lower costs for highway construction in August compared to July but higher than a year ago
• lower profits for transportation industries in the first quarter

Continual updating of information on trends will also help in developing forecasts for the future, both with the DOT and outside. The monthly report will also help transportation decision-makers spot changes that might need rapid action. Updated reports will be available the fourth week of every month.