The Richmond Fed Fifth District Manufacturing Index improved to -7 in August (from -20 in July), signaling a slower pace of contraction but continued weakness in activity.

• Shipments rose to -5 (from -18), and New Orders increased to -6 (from -25), though both remained negative.

• Employment improved slightly to -11 (from -16), while Wages rose to 22 (from 17), reflecting ongoing labor cost pressures.

• Local Business Conditions moved up to 0 (from -11), but expectations weakened to -10 (from -2).

• Prices Paid accelerated to 7.24% (from 5.65%), while Prices Received held steady at 3.14% (from 3.16%).

• Firms see input price growth in the next 6 months staying around 7% YoY, but selling price growth is expected to stay around 4% YoY.

• Backlogs improved to -12 (from -30), and Vendor Lead Times rose to 11 (from 7), suggesting modest easing in supply conditions.