RISE IN RAW MATERIALS PRICES STIRS INFLATION JITTERS.(BUSINESS)

Byline: EILEEN ALT POWELL Associated Press

NEW YORK -- The nation's manufacturers reported the first rise in prices for raw materials in 16 months, stirring fears on Wall Street that inflation is heating up.

The disturbing figures came in a mixed bag of reports Tuesday: the first monthly decline in nearly a year in a key gauge of future economic activity, a big drop in construction spending, and continued strength in the industrial sector.

The Dow Jones industrial average, down almost 270 points last week, was off an additional 110 points by early afternoon Tuesday. And long-term Treasury bond yields edged toward 6 percent, reaching the highest …