Despite persistent inflation and rising living costs, Filipino consumers remain optimistic about their financial future, although more households are cutting back on spending and expecting difficulty paying bills, according to TransUnion Philippines’ latest Consumer Pulse Study.
Consumer Sentiment and Financial Concerns
The Second Quarter (Q2) 2026 survey found that 74 percent of Filipinos expect their household finances to improve over the next 12 months, only slightly lower than the 77 percent recorded a year earlier. However, inflation remained the top financial concern, cited by 84 percent of respondents, followed by worries over job security, recession and rising interest rates.
Households Becoming More Cautious
The study showed that households are becoming more cautious in managing their finances. More than half, or 55 percent, said they had reduced discretionary spending such as dining out, travel and entertainment, up from 47 percent a year ago. Meanwhile, 27 percent canceled subscriptions or memberships, while nearly half (49 percent) increased contributions to their emergency savings.
Despite expectations of higher income, affordability concerns remain. Forty-five percent of respondents said they expect they may be unable to pay at least one of their current bills or loans in full over the next year, slightly higher than the 44 percent recorded in Q2 2025. More than half (51 percent) also expect their bills and loan payments to increase over the next three months.
Household income remained relatively resilient, with 38 percent reporting increased earnings over the past three months, while 74 percent expect their income to rise over the next year. However, TransUnion said consumers continue to adjust spending habits as higher prices weigh on household budgets.
Sustained Demand for Credit
The report also found sustained demand for credit. Nearly half (48 percent) of respondents plan to apply for new or refinanced credit within the next 12 months, with personal loans remaining the most sought-after product, followed by buy now, pay later services and credit cards. Mortgage demand, however, declined as affordability challenges persisted.
Still, many consumers continue to encounter obstacles in obtaining credit. Six in 10 respondents said they had considered applying for credit but ultimately decided not to proceed, citing high borrowing costs, income or employment eligibility concerns and lengthy approval processes as the main reasons.
The study also highlighted growing financial awareness among consumers. Weekly credit report monitoring rose to 45 percent from 38 percent a year ago, while 74 percent said monitoring their credit report is important. Forty-five percent also believe artificial intelligence will have a positive long-term impact on their lives.
Digital Fraud Top Concern
At the same time, digital fraud remains a significant concern. Two-thirds (66 percent) of respondents said they had been targeted by a fraud scheme in the past three months, including 11 percent who became victims. Phishing remained the most common scam, followed by smishing, money and gift card scams, online marketplace fraud and voice phishing.
TransUnion said the findings indicate that while Filipino consumers remain confident about future income and employment prospects, they continue to face affordability pressures that are shaping more cautious spending, borrowing and saving decisions. The survey covered 961 adults nationwide from April 29 to May 19.
