MANILA – Fewer Filipinos are seeing a decline in household income in the future amid the coronavirus disease 2019 (Covid-19) pandemic, according to a TransUnion survey released Thursday.
Based on the TransUnion Philippines Consumer Pulse Study for the fourth quarter of 2021, the number of respondents that expect lower household income in the future declined by 8 percentage points to 46 percent.
“There is a belief that vaccinations are a possible contributing factor to a growing optimistic economic outlook,” TransUnion said in a statement.
With a total of 1,089 Filipinos surveyed from Nov. 1 to 8, 2021, 59 percent of the respondents said their income has decreased due to the pandemic. This is lower than the 64 percent that reported a decline in income in the third quarter of last year.
“Despite that positive direction, more than half (52 percent) of respondents surveyed said they had cut back on discretionary spending in the last three months,” TransUnion added.
About 47 percent of respondents said they saved money for an emergency fund during the last quarter of the year.
On the other hand, the survey showed that momentum in e-commerce will continue as 47 percent of the respondents said they expect their online transactions to increase in the future.
In terms of paying obligations, 46 percent of respondents said they expect that they will not be able to pay their current bills and loans in full.
“From financial health to the disruptions in daily living, the lives of millions of Filipinos have drastically changed and continue to change due to Covid-19,” TransUnion Philippines president and chief executive officer Pia Arellano said.
Top bills and loans that consumers seem to be challenging to pay in full include personal loans, mortgages and home loans, and credit cards.
Despite this, 44 percent of the respondents said they were planning to apply for credit and lending products this year to meet their financial goals.
“As an ongoing study, TransUnion Philippines continuously strives to develop a comprehensive understanding of the financial impacts of the pandemic as well as to harness the information to better inform consumers, businesses, and other stakeholder decisions as the pandemic continues to impact our daily lives,” Arellano added. (PNA)
