Increase in total family income and expenditure seen in 2003

• Total family income in 2003 was estimated at P2.4 trillion increasing by 10.5 percent over the P2.2 trillion in 2000.

• Total family expenditure reached P2.0 trillion, which was higher by 13.0 percent over the P1.8 trillion in 2000.

• Adjusting for inflation, total family income in 2003 was worth P2.1 trillion in 2000. Thus, in real terms, total family income decreased by 2.9 percent compared to that in 2000.

• Likewise, total family expenditure in 2003 was valued at P1.78 trillion in 2000 prices. This real value of the total family expenditure decreased by 0.7 percent compared to that in 2000.

• Among regions, NCR got the biggest share of 26.6 percent (P642 billion) of the total income while Caraga and ARMM posted the least with 1.6 percent (P38 billion) each.

• Similarly, NCR had the biggest share of the total family expenditures spent (P528 billion or 26.1%). ARMM likewise showed the least expenditure with 1.5 percent (P30 billion).

Annual average income and expenditure showed upward trend

• Average income was estimated at P148,616 in 2003 yielding an increase of 2.4 percent compared to the 2000 level of P145,121. This translates to an annual growth of 0.8 percentage point.

• Average expenditure increased from P118,839 in 2000 to P124,377 in 2003 posting a growth rate of 4.7 percent over the three-year period, or an annual growth of 1.5 percentage points.

• The P148,616 average income in 2003 becomes P130,594 in 2000 prices when the effect of inflation was removed. Similarly, the P124,377 spent in 2003 was worth only P109,294 in 2000 prices.

• The inflation-adjusted estimates showed a decrease of 10.0 percent in average income and an 8.0 percent decline in average expenditure.

Rising annual average income observed in regions

• Most of the regions exhibited increases in average income between 2000 and 2003 at current prices, except for NCR, MIMAROPA and Northern Mindanao which reported decreases.

• NCR (P274,529), CALABARZON (P185,661), Central Luzon (P158,075) and CAR (P157,045) were the top four regions in terms of average income, posting estimates higher than the national average.

• ARMM registered the lowest average income among regions with P84,439. This was higher by 6.7 percent compared to its 2000 average income of P79,110.

Annual average saving declined in 2003

• Average saving was measured in 2003 at P24,239 down by 7.8 percent from P26,282 in 2000. In real terms, this 2003 average saving was equivalent to P21,300 in 2000 prices.

• Despite the decline in average saving, families in all regions on the average, earned more than they spent. NCR recorded the biggest average saving of P48,593 while Caraga got the least with P10,960.

Low income families drawn towards more dissavings

• The income decile distribution showed increasing income shares of families from the first to the ninth decile. Only families belonging to the high-income group, such as those in the tenth decile, registered a 1.6 percentage points decrease in their income share.

• Although the tenth decile’s share decreased, still its income was about 21 times the income of the bottom 10 percent.

• Relatively, average expenditure of families from the first to the ninth decile increased between 2000 and 2003 but those in the tenth decile declined by 2.0 percentage points.

• Dissaving was observed in the first three deciles. The positive income trend was not enough to cover the expenditure of low-income families in the first three deciles as seen in their average dissaving (income net of expenditure) of P2,121 for the first decile, P1,202 for the second decile and P44 for the third decile.

Less unequal income distribution in 2003

• The 2003 Gini coefficient was recorded at 0.4678 down by 3.0 percent from 0.4822 in 2000. A lower gini coefficient indicates a movement towards a more equal or less unequal income distribution among families.

• Eight of the regions registered decreases in the Gini coefficient indicating a shift towards lesser family income disparity. NCR showed the biggest decrease from 0.4451 in 2000 to 0.4088 in 2003.

Spending pattern of Filipino families moved towards lesser food consumption expenditure

• The share of family expenditure on food items continued to slide indicating a change in the spending pattern of Filipino families towards less spending on food. In 2003, the share of food expenditure to total expenditure was 42.8 percent, about 0.8 percentage point lower than the 2000 proportion of 43.6 percent.

• The proportion of expenditure on food consumed at home went down from 38.6 percent in 2000 to 37.5 percent in 2003. On the other hand, higher spending on food consumed outside the home was observed as the proportion went up from 5.0 percent in 2000 to 5.3 percent in 2003 suggesting a change in the Filipino family lifestyle of regularly eating outside the home and possibly be linked to the growth of fast food chains.

• Families spent more on transportation and communication as these expenditures were monitored to move up from 6.8 percent in 2000 to 7.4 percent in 2003.

• Increases in expenditure share were also noted in fuel, light and water, personal care and effects, clothing, footwear & other wear, medical care, durable furniture & equipment and miscellaneous expenditures such as those for special family occasions and gifts & contributions.

• Meanwhile, the share of expenditure on housing decreased by 1.0 percentage point from 14.3 percent in 2000 to 13.3 percent in 2003.

• The 2003 Family Income and Expenditure Survey (FIES) is a nationwide survey of households undertaken every three years by the National Statistics Office (NSO). It is the main source of data on family income and expenditure which include, among others, levels of consumption by item of expenditures as well as sources of income in cash and in kind. The results of FIES provide information on the levels of living and disparities in income of Filipino families, as well as their spending patterns.

• The sampling design of the 2003 FIES uses the 2003 Master Sample for Household Surveys. In this design, the country’s 17 administrative regions were defined based on Executive Orders 36 and 131.

• For comparability of results, the 2000 FIES data in this release were generated using the new regional grouping. However, 2000 FIES estimates for Isabela City cannot be generated separately from Basilan as this city was not a domain in the sampling design used for the 2000 FIES. As such, Isabela City remained to be part of the whole Basilan province under Region IX in 2000. In 2003, however, based on Executive Order 36, Isabela City, being a separate domain was grouped under Region IX while the rest of the province of Basilan (excluding Isabela City) is grouped under ARMM.

• In 2000, Marawi City was a separate domain under Region XII. In 2003, with the use of the new master sample, Marawi City became part of ARMM together with the rest of Lanao del Sur.

• To be able to compare the 2003 FIES estimates with the 2000 FIES results in real terms, the effects of inflation have to be removed. For comparative purposes, the Consumer Price Index (CPI) is used to deflate the 2003 FIES estimates. The country’s CPI for 2003 is estimated at 113.8.