The Roanoke College Virginia Consumer Sentiment and Inflation Expectations Report

SALEM, Va., May 28, 2014 /PRNewswire/ -- The Roanoke College Poll interviewed 604 Virginians about their financial situation, general business conditions now and in the future, their inclination for purchasing durable goods, and their thoughts on prices in the near- and long-term.

The Virginia Index of Consumer Sentiment (VAICS) rose to 84.5 in May, up 1.5-points since February 2014. The increase continues the upward trend held through the middle of 2013, save the drop in November 2013, and is close to the 84.0 reading from May 2013. Sentiment in Virginia is slightly above the May preliminary national consumer sentiment value of 81.8.

The Virginia Index of Consumer Expectations (VAICE) is 84.7 in May, up slightly from 82.1 in February 2014. The preliminary May 2014 national measure of expectations is 73.2 indicating that Virginians are considerably more optimistic about the future of the economy than the nation as a whole. The share of respondents who believe that the next five years will be a period of high unemployment and recession is down more than 7 points since February and more than 13 points for the first part of 2014.

Virginians report being better off financially today than a year ago and that business conditions have strengthened. The Virginia Index of Current Conditions (VAICC) is 84.2, little changed since February 2014, but up since 2013. Twenty-eight percent of respondents report improved household finances from a year ago. Of those reporting that they are better off financially today compared to a year ago, 62-percent attribute the improvement to higher income, while only 1.5-percent to lower prices. Of those who report that they are worse off financially today compared to a year ago, 33.6 percent attribute it to lower income and 34.9 percent blame higher prices. Additionally, poor health, rising health care costs, and job loss are factors in worsening household circumstances.

The nation as a whole is considerably more positive about current economic conditions. The University of Michigan reported a preliminary May 2014 current conditions value of 95.1, down slightly since February 2014. The Virginia-US gap concerning current conditions has persisted since 2013.

For more information, including regional values, visit www.roanoke.edu.

SOURCE Roanoke College