Hurricane Katrina FAQ

Frequently Asked Questions (FAQs)
Effects of Hurricane Katrina on
Manufacturing and Trade Inventories and Sales (MTIS)
September 2005

This set of Frequently Asked Questions presents additional information on the Retail and Food Services Sales and Inventories estimates. For additional information on the other two components of the MTIS: Manufacturer’s Shipments, Inventories, and Orders (M3) or the Monthly Wholesale Trade Survey (MWTS), see the following links:

M3: http://www.census.gov/indicator/www/m3/faqs/HurricaneFAQs-09051p.pdf

MWTS: http://www.census.gov/svsd/www/katrinasep.html

No. We cannot isolate the effect of Hurricane Katrina on the September 2005 retail sales and inventories as the Monthly Retail Trade and Food Services Survey (MRTS) measures retail activity on a national level and not at specific geographic areas.

The areas affected by the hurricane ordinarily account for a minimal percentage of total U.S. retail activity based on the 2002 Economic Census. See http://www.census.gov/econ/www/Katrina.htm for data from the 2002 Economic Census for the areas affected by the Hurricane Katrina.

Does the Census Bureau have monthly estimates of sales and inventories for the affected areas?

No. We cannot separately quantify the impact on the affected areas because the MRTS is designed to estimate for sales and inventories at the United States level only.

Was the Census Bureau able to collect information from firms operating within the affected areas?

Yes. We mailed sales questionnaires to 284 firms in Louisiana, Mississippi, and Alabama and 264 were able to provide data for September. In addition, we mailed inventories questionnaires to 57 firms in Louisiana, Mississippi, and Alabama and 55 were able to provide September end-of-month inventories. This is consistent with previous months. Further, many large, regional, and other multi-location firms with reporting offices outside the affected states responded at a normal rate.

No. The review of the seasonal adjustment output and diagnostics did not indicate that adjustments to the options were necessary for this month.

How did you represent the September end-of-month inventories for companies that had inventories damaged or destroyed as a result of Hurricane Katrina?

Companies report inventories based on their financial records. Any adjustments to reflect the effects of the hurricane (such as a write-down) will be included in our data when companies reflect it on their records. No significant write-downs to end-of-month inventories were reported by companies for September.