Study: Filipinos cutting back on holiday spending
More Filipinos are scaling back on holiday expenses this year, a sign that household finances remain steady but stretched heading into 2026, according to the latest TransUnion Consumer Pulse Study.
The report, which covered the fourth quarter of the year, found that half of its 961 respondents expect to spend less on holiday shopping compared to last year as they cope with price pressures.
According to TransUnion, inflation was the top financial concern, with 81 percent of respondents feeling the impact of rising prices.
Inflation in September rose to a six-month high of 1.7 percent, and it held steady at 1.7 percent in October before easing to 1.5 percent in November.
Job security also emerged as a concern cited by 57 percent of the respondents.
TransUnion is a credit insights firm operating in more than 30 countries. Its quarterly Consumer Pulse Survey assesses changes in consumers’ personal finances and their expectations for the future, mapping trends in income, debt, and financial identity.
The fourth quarter survey gathered responses from adults spanning Generation Z to Baby Boomers between Sept. 25 and Oct. 15.
More cutbacks
The Philippine Statistics Authority (PSA) reported that unemployment spiked to 5 percent in October, the second-highest level in three years even with the holiday season approaching when seasonal hiring usually picks up.
In terms of magnitude, the PSA said the number of unemployed individuals in October 2025 was at 2.54 million, higher than the 1.97 million unemployed individuals in October last year.
“The combination kept sentiment cautious but not fearful—a kind of watchful stability that defined much of the 2025 outlook,” TransUnion said.
“The overall picture is one of families coping with familiar strain but keeping confidence in their ability to manage—a tone of watchful stability that continues to define the consumer landscape as 2026 approaches,” it added.
Spending behavior in other areas also reflected cutbacks.
Nearly half of households reported scaling back on discretionary activities, such as dining out and traveling, while a quarter reduced spending on digital services, and another quarter canceled subscriptions or memberships.
This comes as respondents expect tighter finances next year, with nearly half anticipating higher bills and loan payments, alongside rising medical costs.
High optimism
Fewer than half expect to increase retail spending, highlighting continued caution in household budgets.
Zooming out, the Philippine economy has been slowing as investor confidence and business sentiment have been affected by the massive corruption scandals involving flood control and other infrastructure projects.
Still, TransUnion reported that income conditions, while not significantly improving, remained broadly stable, and consumer optimism stayed high.
About 42 percent of respondents said their income increased over the past three months, 41 percent reported no change, and 18 percent experienced a decline.
Looking ahead to 2026, three in four respondents (75 percent) expect higher income, while four in five remain optimistic about the year ahead.
Even so, TransUnion noted that this confidence is slightly softer than last year’s level.
“The trend mirrors the wider economy—still expanding, but at a calmer pace after two years of rebound,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.
“Consumers are managing spending more pragmatically, especially with Filipinos looking to spend less this holiday season compared to last year. It’s a sign of practical optimism. People are still participating in the economy, but they are doing so on their own terms and with greater financial intent,” he added.
