Crisis forces Filipinos to cut spending, fear loss of employment, survey says

MANILA, Philippines - An estimated 92 percent of Metro Manila residents have cut their spending after 69 percent admitted that their greatest fear would be the loss of their jobs, a recent survey undertaken by a global research company said. Although 43 percent, of the 1,000 Metro Manila residents polled said that the Philippine economy remains weak, they nevertheless expressed optimism that it will improve soon, Synovate said, citing results of its latest “State of the Economy" survey. For the past six months, consumers were saving less (39 percent), investing less (39 percent) as well as generally spending the same on basic necessities but less on luxury items, said the survey, which polled 1,000 Metro Manila residents from 15 to 64 across all income levels. An estimated 61 percent admitted that they had done less impulse related buying in the last six months, the survey said. “We found that Filipinos were not the only ones to cut back as comparisons with other Asian markets showed that people from Malaysia, Japan, and Taiwan also shared the same sentiments," she added. Besides paying more attention to food prices, majority of those surveyed admitted that they make cost comparisons before making a purchase, the survey said. “More than half (55 percent) said that they have resorted to storing more food at home in case prices go up," Sarthou said. Close to quarter, or 22 percent of those surveyed, believed that they were earning the same amount of money while 23 percent said that they were taking home less. Close to half (44 percent) said that they had earned more money in the last six months. Owing to tight budgets, Filipinos have given up on acquiring high-tech gadgets (28 percent) and big-ticket items (26 percent) such as plasma TVs and electric appliances. An estimated 24 percent also cut down on their holiday and leisure tours while 21 percent sacrificed eating out, the survey said. While 65 percent of Filipinos said that they were worried but could not stop spending immediately, 66 percent acknowledged that they have postponed making life-altering decisions such as delaying marriage, having children, moving house, and changing jobs as well as pursuing higher education. “It’s evident that the current economic situation has impacted the lives of everyday Pinoys but in spite of this worrying trend, the people we interviewed were generally determined and upbeat with over three quarters (89 percent) agreeing that they will always find a way to afford some items that make them feel good," Sarthou added. The survey’s somewhat optimistic results prompted Carole Sarthou, Synovate Philippines’ managing director, to say that “Filipinos definitely have a more positive outlook on the economy when compared with bigger markets." “Close to two thirds of respondents in the US (63 percent), Japan (63 percent), and France (64 percent) believe that their economy is going downhill and will get worse before it gets better compared to only 28 percent of Filipinos," Sarthou said. - GMANews.TV