Filipino households are stepping into 2026 with one foot on the gas and the other firmly on the brake. The TransUnion Q4 2025 Consumer Pulse Study shows a nation that’s financially upbeat — but not about to throw caution or pesos to the wind.
Forty-two percent of consumers saw their income rise in recent months, while 41 percent held steady. And optimism is abundant: three in four Filipinos expect earnings to grow next year, and 80 percent feel good about their household finances.
“Filipinos are learning to operate within tighter margins,” TransUnion said. “It is resilience with a side of steady control.”
Still, wallets remain on guard duty. Inflation continues to be the undisputed villain at 81 percent, trailed by job stability worries at 57 percent and interest rates at 45 percent, the same triple threat stalking households since 2024.
The response? A nationwide trim.
Nearly half of consumers (47 percent) are cutting back on dining out and travel. One in four has dialed down digital services, while another quarter has canceled subscriptions entirely. Even Christmas, famously the Philippines’ favorite excuse to splurge, won’t escape the austerity glow-up, with 50 percent of respondents planning to spend less this season.
And more belt-tightening may be on the horizon. Nearly half of households expect rising bills and loan payments next quarter. Medical costs (42 percent) and retail prices (36 percent) are also expected to creep up. Unsurprisingly, only 27 percent are ready to shell out for big-ticket buys.
“The trend mirrors the wider economy, still expanding but at a calmer pace after two years of rebound,” said Weihan Sun, TransUnion’s Asia Pacific research chief.
Meanwhile, borrowing is becoming less of a reflex and more of a strategic move. While 58 percent still see credit as important, credit applications have slipped to 47 percent from last year’s 53 percent. Consumers now favor smaller, flexible tools like personal loans (49 percent) and buy now, pay later options (35 percent).
“It’s credit with intention,” Sun said. “A tool, not a crutch — and used with far more thought than before.”
