More than four in 10 Filipinos faced financial strain in April as soaring fuel prices linked to the Middle East crisis made it harder for households to stretch their monthly income to cover living expenses.

A recent survey conducted by Synergy Market Research and Strategic Consultancy found that 44 percent of Filipinos aged 18 and above said they struggled to meet financial needs using their monthly earnings in early April.

The figure marked the highest level since September 2022, when 52 percent of respondents reported similar financial difficulties as the country grappled with the economic aftereffects of the COVID-19 pandemic.

"They're feeling the financial constraints. Their current finances and means cannot sustain their needs," said Synergy CEO Germaine Reyes. "And their prognosis of the future is not that optimistic … They're panicking."

The strain was also reflected in Filipinos' perception of their financial standing, with half of respondents saying their situation had worsened over the past six months.

That was a sharp increase from 28 percent in March and the highest level recorded since 2023.

Concerns were heavily tied to rising fuel costs, with 36 percent of respondents saying they were either very worried, concerned or anxious about the future because of successive oil price hikes.

Only 1 percent said they were unaffected by the fuel price increases, while 2 percent said they felt indifferent.

Spending cutback

Filipinos also became less optimistic about their financial outlook. Only 45 percent of respondents said they believed their financial situation would improve over the next six months, down sharply from 57 percent in March and 65 percent in January, before the conflict escalated.

"Prior to the US-Iran conflict, Filipinos were already mindful shoppers," the study said. "This is expected to linger and possibly intensify given uncertainty."

As a result, more households are expected to cut back on spending over the next 12 months. About 49 percent said they planned to make small spending reductions, while 39 percent — the highest since July 2023 — said they expected to make major cuts to household spending.

The survey also found that 39 percent of respondents now believe underconsumption will become "permanent", up from 30 percent a year earlier.

Beyond reducing spending, Filipinos are also delaying major purchases, shifting to cheaper alternatives and becoming more selective with purchases amid prolonged uncertainty.

Philippine Daily Inquirer