CLEVELAND, Ohio — The Northcoast Research Miles Driven Index was flat in May, on the heels of a 1.4 percent decline in April and a 0.8 percent drop in March.

In its report, Northcoast Research said, "While the index turned positive again on a 1-year basis, following a period of contraction that lasted from March through May, we are concerned that the longer-term impact of higher year-over-year gas prices is not yet being reflected in consumers’ driving patterns. In other words, the fact that gas prices are no longer accelerating rapidly is obviously a physiological benefit to consumers’ short-term driving behavior; however, we feel that the longer-term impact on consumer spending and driving patterns from the incremental costs associated with the significant year-over-year price increases has yet to be fully realized. While we clearly acknowledge the fact that there is a delay between changes in miles driven and the impact on the industry, and that numerous other demand variables impact one’s ability to truly quantify/understand the real correlation between changes in demand and the trend in miles driven, we continue to believe a reduction in miles driven will negatively impact investor sentiment in the space."

Northcoast Research is an independent, full-service institutional equity research and trading firm headquartered in Cleveland, Ohio. Founded in 2009, the company’s mission is to add value in each phase of the investment process by aligning the company’s goals with those of its clients. Northcoast aims to provide unbiased, proprietary and actionable fundamental research on select industry verticals and companies, underpinned by comprehensive channel checks across a broad array of industry contacts. The company’s core research verticals are Consumer, Healthcare, Industrial and Business Services.