Virginia Consumer Sentiment Falls to 59.6
Virginia consumer sentiment dropped to 59.6 in August, down 7.8 points from February. The decline marks the lowest current conditions reading since 2022.
The Index of Consumer Sentiment in Virginia fell to 59.6 in August. This represents a drop of 7.8 points from the February level. The figure sits well below the state’s five-year average of 68.1. The decline reflects pressure from rising prices and a weakening job market.
The Index of Current Conditions dropped 11 points to 53.7. This is the lowest level recorded since the inflation surge in 2022. The expectations index fell to 63.5. However, this remains 12 points higher than the national average of 51.5.
Inflation outpaces wage growth
Average hourly wage growth slowed from 3.7% in February to 3.2% in July. Consumer Price Index inflation rose from 2.4% to 3.3% over the same period. Wage gains no longer outpace price increases. Households have little real income cushion.
Alice Kassens, dean of the School of Business at Roanoke College, noted that wage growth is nearly even with inflation. She stated that this leaves consumers with limited financial flexibility. The drop in sentiment reflects the toll of renewed inflation and a cooling labor market.
Households cut big-ticket spending
Forty-two percent of respondents said they were worse off financially. Fifty-one percent said it is a poor time to buy durable goods. Concerns about gas and grocery costs weigh heavily on current views. These factors affect spending more than long-term expectations.
The survey was fielded online from August 4 to August 7. It used Qualtrics software and recruited participants through Prolific. The weighted sample included 547 Virginia residents aged 18 and older. The data provides a snapshot of immediate financial stress.
Economic outlook remains mixed
GDP increased at a 1.5% annualized pace in the second quarter of 2026. This compares to 2.1% in the first quarter. Consumer spending accelerated from 0.5% to 3.4% annualized. The economy shed a net 23,000 jobs in July.
Kassens said Virginians view price pressures as a potentially temporary geopolitical shock. Expectations for the year ahead have held up comparatively well. The commonwealth continues to outperform the nation on sentiment measures. Future optimism depends on inflation and labor market trends.
