Sectors | Tue Aug 21, 2012 10:09pm IST

UPDATE 1-More Americans to travel this Labor Day weekend -AAA

(Adds Tuesday gasoline prices)

NEW YORK Aug 21 (Reuters) - More American travelers will take to the road this Labor Day weekend as consumer confidence remains intact despite the sluggish economy and high gasoline prices, travel group AAA said on Tuesday.

AAA expects 33 million Americans will either drive or fly over the holiday weekend between Aug. 30 and Sept. 3. This is the largest number of travelers since 2008 and up 2.9 percent from a year earlier.

About 28.2 million motorists will drive to their destinations, a 3.1 percent increase from last year's levels. And 2.55 million will fly to their vacation, up 3.7 percent from a year earlier, AAA added.

(Graphic: link.reuters.com/tak22t )

"In the absence of strong economic growth ... it is an encouraging sign that Americans continue to prioritize travel," Bill Sutherland, vice president of AAA Travel Services said in a statement.

The forecast, based on a survey of 50,000 U.S. households, found that 66 percent of respondents do not expect their current financial situation to have a negative bearing on their Labor Day weekend plans.

Motorists will continue to take a hit at the pump, however. Gasoline sold for an average $3.71 a gallon on Tuesday, 4 percent higher than a year ago. Prices had reached the highest level for Aug. 20 according to AAA's records at $3.72 a gallon on Monday and the group expects costs to remain high over the next few weeks.

Costs at the pump have prompted policymakers to consider a response, with the White House saying a release from the country's Strategic Petroleum Reserve is under consideration. (Reporting by Selam Gebrekidan; Editing by Tim Dobbyn)

Top India News

Reuters Showcase

Auto Sector

Auto Sector

Ford aims to triple exports from India with $1 billion plant  Full Article 

Micromax Stake

Micromax Stake

SoftBank-led group in talks to buy stake in Micromax - sources  Full Article 

Airwaves Auction

Airwaves Auction

Top three mobile operators spend $13.6 bln in airwaves auction  Full Article 

Insurance Sector

Insurance Sector

Australia's IAG to up stake in joint venture with SBI  Full Article 

Accenture Results

Accenture Results

Accenture raises revenue growth forecast for second time  Full Article 

GAIL's Plans

GAIL's Plans

GAIL seeking 7 LNG cargoes from Oct. 2015-Dec. 2016 - tender document.  Full Article 

Eyeing Pininfarina

Eyeing Pininfarina

Pininfarina confirms Mahindra interest, says no deal yet  Full Article 

SH Kelkar IPO

SH Kelkar IPO

SH Kelkar files prospectus for IPO, seen at around $100 mln  Full Article 

Australia Beat India

Australia Beat India

Smith shines as Australia down India to reach final  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage 

X