The following is the unedited transcript of the news release from the U.S. Census Bureau.




MONTHLY WHOLESALE TRADE: SALES AND INVENTORIES

July 2005

Sales.

The U.S. Census Bureau announced today that July 2005 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $298.7 billion, up 0.5 percent (+/-0.7%)* from the revised June level and were up 7.5 percent (+/-1.2%) from the July 2004 level. The June preliminary estimate was revised downward $0.2 billion or 0.1 percent. July sales of durable goods decreased 0.2 percent (+/-1.0%)* from last month, but were up 4.9 percent (+/-2.0%) from a year ago. Sales of metals and minerals except petroleum, decreased 4.3 percent from
last month. July sales of nondurable goods increased 1.2 percent (+/-0.8%) from last month and were up 10.2 percent (+/-1.5%) from last year. Sales of petroleum and petroleum products increased 7.6 percent from last month and sales of farm product raw materials increased 4.6 percent.

Inventories.

Total inventories of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations but not for price changes, were $352.0 billion at the end of July, down 0.1 percent (+/-0.3%)* from last month, but were up 8.2 percent (+/-1.0%) from a year ago. The June preliminary estimate was revised downward $0.7 billion or 0.2 percent. End-of-month inventories of durable goods increased 0.3 percent (+/-0.5%)* from June and were up 9.9 percent (+/-1.0%) from last July.

Inventories of electrical goods increased 1.8 percent, while inventories of metals and minerals, except petroleum, were down 1.7 percent. End-of-month inventories of nondurable goods decreased 0.7 percent (+/-0.5%) from June, but were up 5.4 percent (+/-1.5%) compared to last July. Inventories of drugs and druggists’ sundries decreased 4.9 percent from last month and inventories of paper and paper products were down 1.4 percent.

Inventories/Sales Ratio.

The July inventories/sales ratio for merchant wholesalers, except
manufacturers’ sales branches and offices, based on seasonally adjusted data, was 1.18. The July 2004 ratio was 1.17.

Data in this report are based on a sample and, therefore, are subject to sampling and nonsampling

Reliability of the Estimates

Because the estimates presented in this report are based on a sample survey, they may contain sampling error and nonsampling error. Sampling error is the difference between the estimate and the result that would be obtained from a complete enumeration of the sampling frame conducted under the same survey conditions. This error occurs because only a subset of the entire sampling frame is measured in a sample survey. Standard errors and coefficients of variation (CV), as given in Table 2 of this report, are estimated measures of sampling variation.

The margin of sampling error, as used on page 1, gives a range about the estimate which is a 90-percent confidence interval. If, for example, the percent change estimate is +1.2 percent and its estimated standard error is 0.9 percent, then the margin of sampling error is ±1.645 x 0.9 percent or ±1.5 percent, and the 90 percent confidence interval is -0.3 percent to +2.7 percent. If the interval contains 0, then one does not have sufficient statistical evidence to conclude at the 90 percent confidence level that the change is different from zero and therefore the change is not statistically significant. Estimated changes shown in the text are statistically significant unless otherwise noted. For a monthly total, the median estimated coefficient of variation (CV) is given. The resulting confidence interval is the estimated value ± 1.645 × CV × (the estimated value). The Census Bureau recommends that individuals using estimates in this report incorporate this information into their analyses, as sampling error could affect the conclusions drawn from the estimates.

Nonsampling error encompasses all other factors that contribute to the total error of a sample survey estimate. This type of error can occur because of nonresponse, insufficient coverage of the universe of wholesale businesses, mistakes in the recording and coding of data, model error, and other errors of collection, response, coverage, or processing. Although nonsampling error is not measured directly, the Census Bureau employs quality control procedures throughout the process to minimize this type of error.

Description of the Survey

The U.S. Census Bureau conducts the Monthly Wholesale Trade Survey (MWTS) to provide national estimates of monthly sales, end-ofmonth inventories, and inventory-to-sales ratios by kind of business for wholesale firms located in the United States. Specifically, the MWTS covers wholesale merchants who sell goods on their own account and include such businesses as wholesale merchants or jobbers, industrial distributors, exporters, and importers. Sales offices and branches maintained by manufacturing, refining, or mining firms for the purpose of marketing their products are not covered in this report. Also excluded is NAICS Industry Group 4251: Wholesale Electronic