By RICK BARRETT

Another report shows the instability of the economic recovery in the Milwaukee area.

On Friday, the Milwaukee chapter of the Institute for Supply Management said the local economy declined in October, with its seasonally adjusted manufacturing index falling eight points to 50 from 58 in September.

The index is based on a survey of local industrial companies and measures things such as new orders, production and employment. A reading above 50 means growth; below 50 means contraction.

So far this year, the highest reading has been 58.

The decline to 50 reflected several factors. A sub-index measuring new orders fell 13 points, to 53, while production fell 15 points to 56. Blue-collar employment fell 12 points to 38, while white-collar employment rose two points to 47. Inventory levels dropped four points, to 44, while capital equipment purchases fell five points to 50.

A prices-paid index remained at 54. Prices of nine commodities went up, while nine went down and three did not change.

Chemical prices rose 15 points, followed by a 12-point increase in plastics prices.

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