Manila, Philippines, July 8, 2026 – Filipino consumers remain broadly optimistic about their financial future, but rising living costs are increasingly reshaping how households spend, save and borrow. The Q2 2026 Consumer Pulse Study by TransUnion (NYSE: TRU) shows that while the majority continue to expect their household finances to improve in the coming year, confidence is being tempered by inflation and ongoing uncertainty surrounding the broader economic environment.

Optimism Broadly Holds, but Affordability Pressures Keep Households Cautious

Household income was broadly stable this quarter. While slightly below the 41% seen in Q2 2025, more than one-third (38%) of consumers still reported an income increase over the past three months. Meanwhile, 43% saw no change and only 19% experienced a decline, suggesting that although momentum has eased, overall, the majority of households are not slipping backward. Looking ahead, expectations for earnings remain strong, with 74% anticipating income growth over the next 12 months – more than the 73% recorded a year ago. This resilience continues to underpin a positive financial outlook, as 74% of consumers expressed optimism about their household finances in the year ahead.

Despite this optimism, signs of financial strain persist. Inflation remains the top concern, cited by 84% of consumers in their top three biggest worries affecting household finances in the next six months, and will likely persist as the pass-through effects of the oil price shock materialize. Other key pressures on household finances include job security (54%) alongside recession and interest rates (both at 44%). While data from the Philippine Statistics Authority (PSA) show inflation easing from 7.2% in April to 6.8% in May 2026, the May rate remains among the highest for that month since 2021¹. Affordability pressures are evident, with TransUnion’s research showing nearly half of consumers (45%) expecting to be unable to fully pay at least one of their current bills or loans, slightly up from 44% in Q2 2025.

“Filipino households are entering the second half of the year optimistic but clear-eyed. 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,” said Weihan Sun, senior director of research and consulting for Asia Pacific at TransUnion.

Spending and Saving Grow More Cautious, with Rising Reliance on Credit

In the face of persistent inflation and rising living costs, households are responding with deliberate caution – prioritizing essential spending and actively adjusting budgets amid ongoing cost pressures. Over half (55%) of consumers reported reducing discretionary spending like dining out, travel and entertainment in the last three months, up from 47% in Q2 2025. At the same time, they reported strengthening financial safety nets: 49% added to their emergency savings, up from 45%, while fewer (8%) drew on retirement funds, down from 12% a year ago.

As part of this shift, consumers are also balancing financial resilience with a growing reliance on credit. Reported use of available credit in the last three months rose to 17% from 15% last year, and looking ahead, 51% expect their bills and loan payments to increase over the next three months, slightly more than 49% in Q2 2025.

“Across these behaviors – from trimming discretionary spending to building savings while leaning on credit more selectively – what stands out is how intentional these choices are. Filipino households are not simply responding to pressure, but prioritizing what matters and being deliberate with every peso, using credit with intention to smooth day-to-day cash flow and bridge spending gaps. This shift toward more active financial management is an encouraging sign of growing financial maturity,” added Sun.

Credit Demand Stays Strong, but Cost and Eligibility Barriers Stall Follow-Through

As reliance on credit increases, it remains central to how Filipinos achieve their financial goals: more than half (58%) see access to credit and lending products as extremely or very important, unchanged from Q2 2025. At the same time, accessibility remains steady, with 44% reporting sufficient access – which is also consistent with a year ago – although almost one-quarter (24%) disagree.

Credit appetite stayed high, with nearly half (48%) of Filipino consumers planning to apply for new credit or refinance existing credit in the next year. Among those who said they would apply, growth is driven by everyday products such as personal loans, rising from 45% in Q2 2025 to 52%, and credit cards, increasing from 31% to 35%. In contrast, demand for mortgages softened to 12% from 17% a year earlier.

Despite robust interest in credit, many consumers continue to encounter obstacles along the borrowing journey. Three in five (60%) of those who considered credit applications abandoned their plans, up from 57% a year ago. The primary reason for abandoning applications was the cost being too high (35%), followed by finding an alternative funding source (32%) and income or employment status (28%).

“More Filipinos are turning to credit for the flexibility it offers, especially in uncertain times. However, when six in ten of those who considered borrowing walk away from a credit application, the issue is more friction than intent. The opportunity for lenders is to make credit more inclusive, so responsible borrowers are not lost to cost, complexity or eligibility barriers, while consumers can play their part by maintaining healthy credit habits. That is how we turn credit access into lasting financial resilience,” said Sun.

TransUnion's Consumer Pulse Study surveyed 961 adults from April 29 to May 19, 2026. This quarterly survey examines shifting consumer attitudes and behaviors based on the dynamics of income, debt, and identity theft. Respondents ranged from Gen Z, 18-29 years old; Millennials, 30-45; Gen X, 46-61; and Baby Boomers, age 62 and above. By capturing insights across generations and financial situations, the study helps promote greater financial inclusion by informing policies, products and education efforts that meet the evolving needs of all consumers.

For more information, please view the full report of the TransUnion Q2 2026 Consumer Pulse Study.

¹ Summary Inflation Report Consumer Price Index, May 2026, Philippine Statistics Authority

These findings are set against the recent backdrop of the Philippine Statistics Authority (PSA) reporting that inflation reached 6.1% for the month of June – the highest in almost four years³. The uptrend in inflation was due to higher prices for different items and services⁴. Additional findings from the PSA also showed a decline in the purchasing power of the local Peso, highlighting how the value of PHP1 in 2018 is equivalent to only PHP0.87 in June 2022⁵.

Filipinos tighten financial belts

The results from the latest TransUnion Consumer Pulse (May 26-June 7 of 1,005 Filipino adults) showed a palpable shift in how consumers allocate and manage their finances. While 43% of respondents reported an increase in household income in the prior three months, the same percentage of respondents said they decreased discretionary spending such as dining out and traveling in the same time period. Among generations, Gen X (born 1965-1979) and Baby Boomers (born 1944-1964) reported cutting back the most at 49% and 47%, respectively.

A large number of Filipino consumers (42%) are planning to maintain this trend over the coming three months. In terms of large purchases such as appliances or cars, 61% of respondents expected their spending to decrease or stay the same. On the other hand, most respondents (48%) expected to spend more on bills and loans over the same timeframe, the category with the highest reported spending increase.

In terms of the ability to meet financial obligations, 46% of respondents reported being unable to pay at least one of their current bills and loans in full. To maintain the payment of bills and loans among those who said they’ll be unable to pay at least one bill or loan, 46% of respondents intend to use money from savings. At almost half (49%), Gen Z respondents (born 1995-2004) reported preferring this method the most among all generations.

Credit seen as financial enabler

Most Filipinos (96%) believe in the importance of having access to credit and lending products to achieve financial goals. Almost half of all respondents (43%) surveyed believe they have sufficient access to credit and lending products. Baby Boomers led the pack at 55% while Millennials (born 1980-1994) and Gen Z followed at 44% and 41%, respectively.

Over half (55%) of all respondents reported planning to apply for new credit or refinance existing credit within the next year. Baby Boomers led generations with 62% of respondents reporting credit application plans, with Millennials second most likely at 57%.  

Among respondents with plans to apply for new or refinance existing credit in the next 12 months, most expect to apply for new personal loans (53%), and new credit cards (41%). In comparison, over a third (35%) plan to apply for a new mortgage or home loan and almost a quarter (24%) for new car loans. Conversely, over half (59%) of respondents considering applying for new credit or refinance existing credit ultimately decide against it. Some cite the high cost of new credit or refinancing (32%), while others believe that income or employment status would serve as a reason for their rejection (30%).

Additional findings on the reasons for abandoning applications for new credit show that the lengthy amount of time spent awaiting a decision was the third highest factor for more Filipinos (29%), and finding an alternative funding source was the fourth highest (27%).

“Credit can act as a catalyst for economic growth, but many consumers feel excluded or are rejected for credit because lenders can’t accurately assess their credit risk. By using enhanced digital journeys and improved insights, lenders can more accurately price loans and manage risk. Our latest Consumer Pulse Study found that 54% of consumers believed their credit scores would increase if businesses used information not on a standard credit report. This use of alternative data in credit scoring and decisions can significantly increase levels of financial inclusion across the country – enabling greater access to credit for more Filipinos during these challenging times.” said Pia Arellano, President and CEO of TransUnion Philippines.

The complete TransUnion Consumer Pulse Study can be viewed here.

[1] Quarter-on-quarter PH GDP growth could end in Q2 | Inquirer Business

[2] UK think tank: ‘Revenge spending’ in PH likely over as savings dry up | Inquirer Business

[3] https://psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-2018100-june-2022

[4] https://ph.news.yahoo.com/philippines-inflation-hits-61-in-june-091550283.html

[5] https://www.gmanetwork.com/news/money/economy/837074/p1-in-2018-was-worth-87-centavos-in-june-psa/story/