MORE than two in five Filipinos said their income grew in the second quarter of the year, results of TransUnion’s Q2 Consumer Pulse Study showed.
TransUnion’s Consumer Pulse Study surveyed 944 adult Filipino consumers from May 1 to 10, 2024. It examined shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft.
Survey results released on Wednesday, August 21, showed that 42 percent of respondents reported an increase in income, slightly higher than the 41 percent recorded in the second quarter of 2023.
“This optimism persists into the near future with most Filipinos (78%) also expecting an income increase in the next 12 months,” TransUnion said.
The study, however, noted that despite the positive income outlook, respondents’ sentiments about household expenses showed signs of financial strain.
TransUnion said 44 percent of respondents feared they would be unable to pay their current bills and loans in full, which represented a three percentage point increase from the same quarter last year.
The concern over financial stability was reflected in a four percentage point drop in respondents feeling optimistic about their household finances in the next 12 months.
It said pessimism (8 percent) and neutrality (12 percent) edged up but the biggest concerns affecting household finances were inflation, job security, and interest rates.
The study said these concerns influenced household spending, adding that only 22 percent disclosed increased discretionary spending such as dining out, travel, and entertainment.
The study, however, showed that looking forward, Filipinos have a more positive spending outlook.
While 52 percent expected an increase in bills and loans, 39 percent foresaw increased retail shopping – reflecting notable jumps of seven and six percentage points respectively from the same quarter in 2023.
Nearly half of Filipinos also expected additional medical spending and one-third expected more large purchases over the next three months.
“Although more Filipinos enjoyed increased household incomes in Q2 2024 and expect this trend to persist in the next 12 months, the adjustments they made to household budgets suggest a cautious approach to financial management,” said TransUnion Principal of Research and Consulting for Asia Pacific Weihan Sun.
Sun added: “This seemingly contradicting sentiment suggests a vigilant yet hopeful outlook as Filipinos continue to acclimate to economic challenges, navigating between necessary expenditures and financial prudence.”
Access to credit
TransUnion said that while Filipinos perceive credit to be an important factor in achieving financial goals, only 38 percent felt like they had sufficient access to it.
Gen Z consumers had the lowest confidence in obtaining approval for the credit or lending products they need.
In terms of the type of credit sought, personal loans were the most popular among all generations. (Philippine News Agency)
