Consumer spending habits have been impacted by the repercussions of the government shutdown, influencing the shopping habits of USC students this holiday period.
Reuters economists estimated that following the 2025 government shutdown — which lasted 43 days and ended on Nov. 12 — gross domestic product growth decreased 0.1 to 0.2 percentage points per week.
Despite these numbers, the economy is still projected to grow, supported by rising incomes and strong household balance sheets recorded throughout the country. However, the pace of growth is expected to be slower than in 2024, according to data from S&P Global’s quarter-end report.
Consumers are shifting toward more value-oriented buying habits. Deloitte reports that intentions to spend on essentials like groceries and housing are increasing, while planned spending on nonessential items has declined.
Junior architecture major Gabriel Torres Oaxaca said the post-government shutdown economy has influenced his decision not to participate in this year’s annual Black Friday and Cyber Monday deals.
“I think the sales are not as good as they used to be,” said Oaxaca. “I don’t have the budget for that.”
Oaxaca also expressed his concerns about the aftermath of the government shutdown.
“I think the economy has been really rough. People don’t have that spending money anymore, and I haven’t for a while,” said Oaxaca.
For college students with TikTok and Instagram feeds flooded with captions like ‘The Perfect Clean-girl’ or ‘Gym-bro Holiday Gift Guide’ and influencer discount codes upon discount codes, it’s difficult for Gen Z consumers to escape the check-out button.
USC student Reagan Yeager is worried that the rippling effects of the government shutdown might delay the shipment of her Cyber Monday orders.
“Hopefully it won’t impact my delivery dates,” said the junior business administration major.
In PwC’s 2025 Holiday Outlook survey, Gen Z reported plans to cut down spending during the holidays by 23% this year, after expecting to boost spending by 37% in 2024.
Senior communication major Mallory North plans on keeping her shopping modest this year.
“I always have the intention of shopping for other people, but I usually don’t find the deals I’m looking for on anything that’s a relevant gift. So if I buy something, it’ll probably be like a T-shirt for myself, and that’s about it,” said North.