Increases in Manufacturing

According to a recent article released by Forbes, the nation's manufacturing sector expanded in during the month of September. However, the price of raw materials have been on the rise. The higher prices for materials has some economists worried about a rise in inflation and interest rates.

The manufacturing index has risen from 53.6% from August to 59.4% in September. Any reading above 50% indicates the industry is expanding. This expanation is above the 54% many economists were predicting. Along with the manufacturing index rising the price index for crude oil rose 15.5% from August, topping off at 78%.

Do you think the increase in cost of raw materials will cancel out, or even out weigh the gains from the increased manufacturing industry? Is the increase in the manufacturing industry short lived? Will it decline rapidly after the cleanup from the hurricanes have passed? What about the idea of increased inflation and interest rates?