How did you represent the August and September 2005 end-of-month inventories for Monthly Retail Trade Survey respondents 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. Our review of the data reported by companies for August and September showed no significant write-downs to end-of-month inventories. Based on discussions with over 300 respondents, fewer than 5% of companies indicated that they had inventories damaged or destroyed by Hurricane Katrina. Two reported small write-downs for August. Most of the rest expected a write-down would occur, but were uncertain as to when it would be reflected on their records.
For more information, visit the Monthly and Annual Retail Trade website.