Survey: Fuel economy in new cars hits highest level since '07

Fuel economy of new vehicles purchased in October hit its highest level since at least 2007, the University of Michigan Transportation Research Institute said Monday.

The average fuel economy based on window-sticker value of new vehicles sold in the U.S. in October was 24.1 mpg — the highest level yet, and up 4.0 mpg from October 2007, the first month of monitoring.

This 20 percent improvement in fuel economy corresponds to a 17 percent reduction in fuel consumption.

The University of Michigan Eco-Driving Index — an index that estimates the average monthly emissions of greenhouse gases generated by individual U.S. drivers — stood at 0.81 in August, an improvement of 19 percent since October 2007. The EDI takes into account both vehicle fuel economy and distance driven.

Officials noted that all of the values are now corrected for the changes in the EPA ratings for the Hyundai/Kia vehicles that were issued on Friday.

The Korean automakers lowered the mpg ratings on most of their models after an EPA investigation. The reduction reduced the automakers' 2012 model year fuel economy by 3 percent from 27 to 26 mpg.

After gas prices for much of 2012 have been at record highs, gas prices have fallen by $0.21 a gallon over the last two weeks to a national average of $3.55, the sharpest dip since 2008, the Lundberg Survey found. That's still 12 cents higher than a year ago.