Electronic nematic phases are broadly characterized by spontaneously broken rotational symmetry. Although they have been widely recognized in the context of high temperature cuprates, bilayer ruthenates, and iron-based superconductors, the focus so far has been exclusively on the uniform nematic phase. Recently, however, it was proposed that on a square lattice a nematic instability in the d-wave charge channel could lead to a spatially modulated nematic state, where the modulation vector q is determined by the relative location of the Fermi level to the van Hove singularity.[1] Interestingly, this finite-q nematic phase has also been identified as an additional leading instability that is as strong as the superconducting instability near the onset of spin density wave order.[2] Here we study the electrical conductivity tensor in the modulated nematic phase for a general modulation vector. Our results can be used to identify modulated nematic phases in correlated materials.