EPA reduces car fuel economy expectationDETROIT — The Obama administration has decided not to change government fuel economy requirements that force automakers to significantly increase the efficiency of new cars and trucks.The decision announced Wednesday follows a mandatory review of the standards established in 2012, when gas averaged $3.60 a gallon and small cars and hybrids were gaining favor.The standards had required the fleet of new cars to average 54.5 miles per gallon by 2025. But there was a built-in reduction if buying habits changed — and they have, dramatically. Now, gas is averaging close to $2 a gallon and three of every five new vehicles sold in the U.S. are trucks and SUVs. As a result, the 2025 fuel-economy number drops to 50.8 mph.Car companies say they’re building small cars and electrics to meet the standards, but few consumers are buying them. Automakers had petitioned the government to lessen the standards.The EPA will take public comments on the decision until Dec. 30.

Consumer spending, wages increaseWASHINGTON — U.S. consumers boosted their spending again in October, while their incomes increased at the fastest clip in six months. A key gauge of inflation watched by the Federal Reserve posted the fastest 12-month gain in two years.Consumer spending increased 0.3 percent in October after a revised 0.7 percent jump in September, the Commerce Department said Wednesday. Incomes increased 0.6 percent, the best showing since April.An inflation gauge closely followed by the Federal Reserve increased 1.4 percent compared to a year ago. That was the fastest 12-month advance since 2014. The rise was still below the Fed’s 2 percent target, but with inflation firming, the Fed is expected to boost a key interest rate next month.The inflation gain marked the strongest pace since prices had risen 1.5 percent for the 12 months ending in October 2014.Gregory Daco, senior economist at Oxford Economics, predicted inflation would begin to run above 2 percent early next year.

Self-driving truck corridor set for OhioDUBLIN, Ohio — Gov. John Kasich announced a $15 million investment in advanced self-driving highway technology Wednesday.The new high tech effort is a self-driving truck experiment along a 35-mile stretch of U.S. Route 33 in central Ohio. The vehicle by truck maker Otto will operate along Route 33 between Dublin and East Liberty, a stretch the state has dubbed a “smart mobility corridor.” A driver will be along as backup. Officials say that four-lane section of Route 33 northwest of Columbus will become a corridor where technologies can be safely tested in real-life traffic, aided by a fiber-optic cable network and sensor systems slated for installation next year. Leading automotive research centers and local governments in the region are partners in the effort.