The central bank's business outlook survey suggested about half of firms foresee a rebound in their sales within the next year as COVID-19's effects recede, but the expectations of a return to pre-pandemic levels often depend on lifting government-mandated restrictions.
Lockdowns and stay-at-home requests from governments put the economy in a deep freeze in mid-March, with the thaw beginning in recent weeks as restrictions began to be rolled back. "Overall, while the economy is on the mend, it's still early days and both businesses and consumers will continue to grapple with uncertainty over the foreseeable future," TD economist Ksenia Bushmeneva said in a note.
The bank said consumers expect to spend mostly on essentials and less on durable goods like cars and furniture, as well services that involve face-to-face interactions like eating out, travel or going to the movies. "Of course, there is a position when some spending becomes too much spending and it's really hard to know where that is."
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