Filipino consumers remain optimistic about their financial prospects over the next year, but persistent inflation is prompting households to tighten spending, boost savings and rely more on credit, according to the latest Consumer Pulse Study done by credit reporting firm TransUnion.
The survey found that 74 percent of respondents expect their household income to improve over the next 12 months, matching the share that expressed optimism about their overall financial outlook. The findings suggest that confidence has remained resilient despite rising living costs and broader economic uncertainty.
At the same time, affordability pressures continue to weigh on household finances. Inflation was identified by 84 percent of respondents as one of their top financial concerns for the next six months, followed by job security (54 percent), recession (44 percent) and interest rates (44 percent).
While 38 percent of respondents reported higher household income over the past three months, down from 41 percent a year earlier, 43 percent said their income remained unchanged and 19% percent experienced a decline.
“Filipino households are entering the second half of the year optimistic but clear-eyed,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion. “They expect their incomes to stay resilient, but they also continue to feel the impact of inflation on everyday expenses.”
The study showed consumers are becoming more cautious with their finances. More than half or 55 percent said they reduced discretionary spending on items such as dining out, travel and entertainment during the past three months, up from 47 percent a year earlier. Nearly half or 49 percent also increased their emergency savings, while fewer respondents reported tapping their retirement funds.
Despite efforts to rein in spending, borrowing continues to play an important role in household financial management. Seventeen percent of respondents said they increased their use of available credit over the past three months, while 51 percent expect their loan and bill payments to rise in the next quarter.
Nearly six in 10 respondents said access to credit is important to achieving their financial goals, and 48 percent plan to apply for new credit or refinance existing loans within the next 12 months.
Demand was strongest for unsecured lending products. More than half of prospective borrowers said they intend to apply for personal loans, while planned credit card applications also increased from a year earlier. In contrast, interest in mortgages declined.
However, the survey found that many consumers are unable to complete the borrowing process. Sixty percent of those who considered applying for credit eventually abandoned their applications, citing borrowing costs, access to alternative funding sources, and income or employment requirements as the main reasons.
Sun said the findings highlight an opportunity for financial institutions to simplify lending processes and improve access to responsible credit while maintaining prudent risk management.
The quarterly Consumer Pulse Study surveyed 961 Filipino adults between April 29 and May 19, 2026. The research examines consumer attitudes toward income, debt and financial behavior across different age groups, including Gen Z, Millennials, Gen X and Baby Boomers.