Manufacturing activity in the Federal Reserve Bank of Philadelphia’s region slipped back into contraction in August, with the district bank’s general activity index falling to ‑0.3 from 15.9 the prior month and badly missing economists’ expectations for a mid-single-digit expansion. Incoming orders also turned negative, while shipments and employment growth slowed. At the same time, cost pressures intensified. The survey’s prices-paid gauge jumped eight points to 66.8, the highest reading since May 2022, and the prices-received measure rose to 36.1. The divergence—weakening demand alongside firmer input costs—revives questions over how far inflation can moderate without a broader cooling in the economy. Housing data out Thursday painted a more resilient picture. Existing home sales increased 2% in July to a 4.01 million annual pace, topping the 3.92 million consensus and reversing June’s decline. Supply remained tight at 1.55 million listings, equal to 4.6 months of demand, while the median selling price edged up 0.2% from a year earlier to $422,400. Broader indicators were mixed: the Conference Board’s leading economic index slipped 0.1% in July for a 16th straight drop, signalling continued headwinds, and weekly mortgage applications fell 1.4% as the average 30-year contract rate nudged up to 6.68%. The batch of figures will feed into deliberations at next week’s Jackson Hole gathering, where Federal Reserve officials weigh evidence of cooling growth against still-elevated price pressures.