Notice Regarding TIPI—May 2003

Texas Industrial Production Index (TIPI) users will have noticed that its release was delayed in early 2003. The postponement was due to computational difficulties stemming from a reporting change from the Standard Industrial Classification system (SIC) to the North American Industry Classification System (NAICS). Beginning with the release of January 2003 data, payroll employment (a key ingredient in the TIPI methodology) is no longer reported according to the SIC. Rather, these data are reported according to the new NAICS. Because the NAICS industry definitions are different from those in the SIC, certain adjustments to the new NAICS-based figures were necessary to be able to continue publishing TIPI on the SIC basis.

The underlying benchmark data for TIPI—gross state product, published by the Bureau of Economic Analysis (BEA)—is not expected to be converted to the NAICS basis until late 2004 or early 2005. TIPI cannot be revised to conform to NAICS until then. In the meantime, we will continue to calculate TIPI according to the SIC.