Virginia's economy is faring better than most states according to a new report by the Thomas Jefferson Institute.

It predicts more jobs, bigger paychecks, and an increase in retail sales over the next two years.

Sales are good inside Native Grace in downtown Roanoke.

"It's been a definite, definite increase," says employee Amir Babi who is also the owner's son.

The store sells handmade jewelry, bags, clothes and other items. Shoppers aren't just buying one thing but several these days. Native Grace has even extended its store hours to meet demand.

"We actually have much later store hours on Friday and Saturday even going as late as 9 o'clock at night," says Babi.

The Roanoke Regional Partnership agrees that Roanoke's economy is getting better.

"The beginning of this year seemed to show a steady recovery in terms of income growth, in terms of economic strength," says Executive Director Beth Doughty.

But that could change.  This new report doesn't take into account events like this year's presidential election.

"I think as the election approaches that you're gonna see a little back of a pull back, a little bit of stalling to see what the outcome of the election is," says Doughty who describes the report as an educated guess about the future not fact.