Source: National Statistics Office, 2003 Family Income and Expenditure Survey  (Final Results)
1/   estimated using population extrapolation based on the growth rate computed using population counts from the 1990 and 2000 Census of Population
2/   estimated using the population estimate for July 2000 taken from the population projections based on 1995 Census of Population

 Increase in total family income and expenditure seen in 2003

• Total family income in 2003 was estimated at P2.4 trillion, higher by 11.4 percent over the P2.2 trillion estimated in 2000.

• Total family expenditure reached P2.0 trillion, which is higher by 13.8 percent over the P1.8 trillion in 2000.

• Adjusting for inflation, the total family income in 2003 was worth P2.1 trillion in 2000. Thus, in real terms, the total family income in 2003 is lower by 2.1 percent compared to that in 2000.

• Likewise, total family expenditure in 2003 was valued at P1.79 trillion in 2000 prices.

• Among the regions, NCR posted the largest share with its total family income (P611 billion) contributing 25.1 percent of the total family income for the entire country, while CARAGA had the smallest share with 1.5 percent (P37 billion).

• Similarly, NCR had the biggest share of the total family expenditures (P500 billion or 24.5%). CARAGA likewise showed the least expenditure with 1.6 percent (P33 billion).

Annual average income and expenditure showed upward trend

• Average income was estimated at P148 thousand in 2003 representing an increase of 1.9 percent compared to the 2000 level of P145 thousand. This translates to an annual growth of 0.6 percent.

• Average expenditure increased from P119 thousand in 2000 to P124 thousand in 2003 posting a growth rate of 4.1 percent over the three-year period, or an annual growth of 1.3 percent.

• The P148 thousand average income in 2003 is valued at P130 thousand in 2000 prices when the effect of inflation was removed. Similarly, the P124 thousand spent in 2003 was worth only P109 thousand in 2000 prices.

• The inflation-adjusted estimates showed a decrease of 10.5 percent in average income and 8.5 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, which reported a decrease.

• NCR (P266 thousand), CALABARZON (P184 thousand), Central Luzon (P160 thousand) and CAR (P152 thousand) 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 P83 thousand. This is higher by 4.8 percent compared to its 2000 average income of P79 thousand.

Annual average saving declined in 2003

• Average saving was measured in 2003 at P24 thousand down by 7.9 percent from P26 thousand in 2000. In real terms, this 2003 average saving is equivalent to P21 thousand 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 thousand while CARAGA got the least with P12 thousand.

Low income families drawn towards more dissaving

• 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 registered a 2.0 percentage points decrease in their income share.

• Although the tenth decile's share decreased, still its income was about 20 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.

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

Less unequal income distribution in 2003

• The 2003 Gini coefficient was recorded at 0.4605 down by 4.5 percent from 0.4822 in 2000. A lower gini coefficient indicates a movement towards a more equal income distribution among families.

• Seven 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 0.4021 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 43.1 percent, about 0.5 percentage point lower than the 2000 share of 43.6 percent.

• The proportion of expenditure on food consumed at home went down from 38.6 percent in 2000 to 37.7 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 5.4 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 7.3 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 house maintenance and minor repair decreased by 0.2 percentage point from 0.9 percent in 2000 to 0.7 percent in 2003.

TECHNICAL NOTES

• 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.

• The 2003 FIES results were estimated using population extrapolation based on the growth rate computed using population counts from the 1990 and 2000 Census of Population. The average household size was based on 2000 Census of Population and Housing.

• 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.

CARMELITA N. ERICTA
Administrator