Virginia Consumer Sentiment Falls to 59.6

Virginia consumer sentiment fell to 59.6 in August. This represents a drop of 7.8 points from the February reading. The index is now below the state’s five-year average of 68.1. The decline reflects rising prices and a cooling labor market. Households report tighter budgets due to these pressures.

The Index of Current Conditions dropped 11 points to 53.7. This is the lowest level since the inflation surge in 2022. Wage growth has slowed, leaving little real income cushion for consumers. Forty-two percent of respondents said they are worse off financially. Fifty-one percent view it as a poor time to buy big-ticket goods.

Economic data shows slowing wage growth

Average hourly pay 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. The economy shed a net 23,000 jobs in July. This followed a gain of only 20,000 jobs in June. GDP increased at a 1.5% annualized pace in the second quarter of 2026.

Survey methodology and participant details

The survey was fielded online from August 4 to August 7. It used Qualtrics software for data collection. Participants were recruited through the Prolific platform. The weighted sample included 547 Virginia residents aged 18 and older. Alice Kassens, a professor at Roanoke College, led the analysis.

Expectations remain higher than national figures

Virginia’s expectations index fell to 63.5. This figure is 12 points higher than the national figure of 51.5. Concerns about gas and grocery costs weigh on current views. They have less impact on longer-term expectations. Residents view price pressures as a potentially temporary shock. The source GN markets/jobs (en-US) reported on these findings.