Somebody's Lying?

The National Pet Owners' Survey (2007) made these claims:

Fact 1: American families have 88.3 million cats and 74.8 million dogs as pets.

Fact 2: Americans spent an estimated $40.8 billion on their pets.

Fact 3: The annual expenses for keeping a dog or cat is $972 and $627 respectively.

Your Task: Look at this data carefully....something seems wrong in Petville! What is it?

Note: In case you are interested, the annual fees were broken down as follows:

• Dog: Vet ($219), Food ($217), Kennel ($225), Grooming ($127), Vitamins ($77), Treats ($66), Toys ($41)
• Cat: Vet ($175), Food ($188), Kennel ($149), Grooming ($18), Vitamins ($31), Treats ($40), Toys ($26)