EXECUTIVE OFFICE OF THE PRESIDENT
                 OFFICE OF MANAGEMENT AND BUDGET
                     WASHINGTON, D.C.  20603

For Immediate Release                                    Contact:
April 8, 1997                                    Lawrence J. Haas
                                                   (202) 395-7254

   ADMINISTRATION INTRODUCES NEW INDUSTRY CLASSIFICATION SYSTEM

     The Clinton Administration today unveiled a new industry classification 
system that will enable the North American Free Trade Agreement (NAFTA) 
partners--the United States, Canada, and Mexico--to better compare economic 
and financial statistics and ensure that such statistics keep pace with 
the changing economy.

     The new system--the North American Industry Classification System 
(NAICS)--will replace the countries' separate classification systems with
one uniform system for classifying industries.  In the United States, NAICS 
will replace the Standard Industrial Classification, a system that Federal, 
State, and local governments, the business community, and the general
public have used since the 1930s.

     NAICS, a flexible system that will take into account changes in the 
global economy, will help to support more informed economic and trade 
policies, more profitable business decisions, and more cogent public 
discussion and debate.  The three countries plan to update the system 
every five years.

     "NAICS is a bold response to those who say that Federal statistics on 
business overlook new and important economic activities," said Sally Katzen, 
administrator of the Office of Management and Budget's Office of Information 
and Regulatory Affairs.  "This new system will ensure that business and 
public decisions can reflect  real' economic changes better and sooner."

     In a marked change from the old system, NAICS reflects the enormous 
changes in technology and in the growth and diversification of services that 
have marked recent decades.

     New NAICS sectors include:

          The Information Sector, which covers industries that create, 
	  distribute, or provide access to information, including: satellite, 
          cellular, and pager communications; on-line services; software and 
          database publishing; motion picture; video, and sound recording; 
          and radio, television, and cable broadcasting.

          The Health Care and Social Assistance Sector, which organizes 
          those industries by intensity of care and recognizes new industries,
          such as HMO medical centers, outpatient mental health care, and 
          elderly continuing care.

          The Professional, Scientific, and Technical Services Sector, 
          which recognizes industries that rely primarily on human capital, 
          including  legal, architectural, engineering, interior design, 
          and advertising services.

     NAICS is scheduled to go into effect with data for 1997 in 
Canada and the United States, and data for 1998 in Mexico.  The 
United States will start implementing NAICS this year, with the Census 
Bureau's 1997 Economic Census.   The first NAICS-based statistics from 
this data collection will be issued in early 1999.