Consumer Sentiment Cracking Amid Gov’t Shutdown; 17% Of Americans Delay Major Purchases, Survey

The government shutdown has entered its eighth day, with Republicans and Democrats still at an impasse over a resolution. Earlier this week, National Economic Council Director Kevin Hassett warned that the shutdown could cost the U.S. economy $15 billion per week. If it drags on for several more weeks, the economic disruption could become far more widespread.

Before consumers make decisions, their sentiment is usually affected. To gauge the current sentiment impact of the shutdown, real estate company Redfin conducted a survey last Friday – just several days into the shutdown – that found 17% of respondents are delaying major purchases, such as a home or vehicle, because of the political turmoil in Washington, D.C.

Roughly one in six (17%) Americans are delaying a major purchase like a home or car because of the federal government shutdown, according to a new Redfin survey. Another 7% are canceling plans for a major purchase altogether. The majority of Americans (65%) said the government shutdown has no impact on their purchasing plans.

This is according to a Redfin-commissioned survey conducted by Ipsos on October 3, 2025. The nationally representative survey was fielded to 1,005 U.S. residents. The combined results have a credibility interval of +/- 3.8 percentage points.

The report continued: 

Some people are canceling or delaying big purchases because they’re directly impacted by the government shutdown; i.e. they’re a federal government employee or contractor who is not currently getting paid, and they may be worried about getting laid off. But most Americans aren’t in that position. People whose incomes aren’t directly dependent on the federal government’s budget may be rethinking a major purchase because the shutdown is one more in a long line of events making Americans feel unstable about their finances.

Adding to the economic gloom of the shutdown, an Axios report on Tuesday, citing a draft White House memo, said the 750,000 furloughed federal employees aren’t guaranteed compensation for their forced time off. 

Redfin Chief Economist Daryl Fairweather noted:

“A government shutdown doesn’t just stop paychecks for some federal employees–it shakes the financial confidence of Americans. People across the country are taking in the news and thinking, ‘we’ve faced inflation, tariffs, job losses, a volatile stock market, and now a government shutdown–what’s next?’ It’s understandable that some people are reconsidering buying a home or a car when the economy feels uncertain.”

Redfin data was not broken down by geographical location, which would have been helpful given that 15.12% of all federal civilian employees, according to OPM, are located in the D.C.–MD–VA–WV metro area.