About 42 percent of Filipinos reported an increase in income in the second quarter of 2024, 44 percent expressed concerns about their ability to fully pay bills and loans, according to TransUnion Philippines’ latest Consumer Pulse survey,
TransUnion’s survey, conducted from May 1 to 10, 2024, polled 944 adult Filipino consumers. It examined changes in consumer attitudes and behaviors related to income, debt, and identity theft.
“While more Filipinos have enjoyed increased household incomes and expect this trend to continue, their budgeting adjustments suggest a cautious approach to financial management,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.
“This contradictory sentiment reflects a vigilant yet hopeful outlook as Filipinos navigate economic challenges and balance necessary expenditures with financial prudence,” Sun said.
The study found that 42 percent of respondents reported an increase in income in the second quarter, up slightly from 41 percent a year ago. This optimism extends into the near future, with 78 percent of Filipinos expecting an income increase in the next 12 months.
Despite the positive income outlook, overall sentiment about household finances shows signs of financial strain. A significant 44 percent of respondents fear they won’t be able to pay their current bills and loans in full, representing a three-percentage-point increase from the same quarter last year.
Concerns about financial stability also led to a 4-percentage-point drop in respondents feeling optimistic about their household finances in the next 12 months. Pessimism and neutrality edged up slightly. The biggest concerns affecting household finances are inflation, job security, and interest rates.
These concerns significantly influenced household spending. While only slightly more than one-fifth (22 percent) of households surveyed increased discretionary spending, such as dining out, travel, and entertainment, almost half (47 percent) say they cut back in the second quarter.
Looking forward, Filipinos have a more positive spending outlook. Even though more than half (52 percent) expect an increase in bills and loans, 39 percent foresee increased retail shopping, reflecting notable jumps of seven and six percentage points, respectively, from the same quarter in 2023. Nearly half of Filipinos also expect additional medical spending (43 percent) and one-third expect more large purchases (29 percent) over the next three months.
More Filipinos (63 percent) consider access to credit and lending products to be extremely or very important to achieve their financial goals, a jump of seven percentage points from the second quarter of 2023. This sentiment is particularly strong among younger generations, with 69 percent of Gen Z and 66 percent of Millennials stressing its importance, compared to only 40 percent of Baby Boomers.
Credit access remains an issue in the Philippines. Only 38 percent of respondents feel that they have sufficient access to credit and lending products, a slight drop from 39 percent in the same quarter in 2023. This decline is more pronounced among Gen Z consumers (33 percent), falling from 38 percent a year earlier. Millennials are the only cohort that feels they have improved access (41 percent), up from 39 percent last year.
Gen Z consumers also share the lowest confidence in obtaining approval for the credit or lending products they need.
