FILIPINO families are pulling back on spending as elevated living costs strain budgets, even as they remain broadly optimistic about their financial futures, according to credit data firm TransUnion’s Q1 2026 Consumer Pulse Study.
“Filipino households are entering the second half of the year optimistic but clear-eyed,” said Weihan Sun, TransUnion senior director of research and consulting for Asia-Pacific. “They expect their incomes to stay resilient, which keeps confidence broadly intact — yet they feel the weight of inflation on everyday costs, such as rice prices, and uncertainty over upcoming financial commitments amid broader global economic headwinds.”
The study — which surveyed 961 Filipino adults online from April 29 to May 19 — found that 55 percent of consumers cut discretionary spending on dining, travel and entertainment over the past three months, up from 47 percent a year earlier.
Emergency savings rose among 49 percent of respondents, compared with 45 percent previously, while only 8 percent dipped into retirement funds, down from 12 percent.
Inflation topped household concerns, cited by 84 percent of respondents, followed by job security (54 percent), and recession and higher interest rates (44 percent each).
The report noted that inflation remains above the government’s 2.0- to 4.0-percent target, with global oil prices adding further pressure.
Nearly half of respondents, 45 percent, said they may be unable to fully pay at least one bill or loan, up slightly from 44 percent a year ago.
Despite these pressures, 74 percent of consumers expect household income to rise over the next 12 months, slightly higher than 73 percent a year earlier, and the same percentage expressed optimism about their finances.
Over the past three months, 38 percent reported higher income and 43 percent said it was unchanged.
“What stands out is how intentional these choices are,” Sun said. “Filipino households are not simply responding to pressure, but prioritizing what matters and being deliberate with every peso.”
Credit use
Credit use is also shifting. Reported use of available credit rose 17 percent from 15 percent, and 48 percent plan to apply for new credit or refinance debt within a year.
Personal loan applications climbed 52 percent from 45 percent, and credit card applications were up 35 percent from 31 percent, while mortgage demand fell 12 percent from 17 percent.
Six in 10 consumers who considered applying for credit abandoned those plans, most often citing high borrowing costs.
Sun said lenders have an opportunity to reduce friction for responsible borrowers: “That is how we turn credit access into lasting financial resilience.”