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2 Minutes Read OTTAWA, ONTARIO (Reuters) – According to a Bank of Canada survey released on Monday, business mood in Canada is improving, with hard-hit firms becoming more hopeful that sales would pick up as vaccines become available, indicating a broadening of the economic recovery ahead. People stroll in the Eaton Centre retail mall in Toronto, Ontario, Canada, as the provincial phase 2 of reopening from the coronavirus illness (COVID-19) restrictions begins on June 24, 2020. Carlos Osorio/File Photo/REUTERS In the summer survey, the central bank’s Business Outlook Survey Indicator hit its highest level on record, owing in part to base-year effects, but also to a rise in positive sentiment. “All but a few enterprises believe the pandemic’s uncertainty is behind them,” the central bank stated. According to Reuters’ COVID-19 vaccine tracker, more than 68 percent of Canadians have been inoculated with one dose and more than 35 percent have been fully vaccinated in recent months. Meanwhile, new infections have dropped dramatically since the third wave peaked, allowing many establishments to reopen. According to the study, the good outlook indicates that plans to invest and employ staff are widespread. Businesses in all areas and industries expect to hire, implying that the labor market recovery will accelerate. According to the study, most businesses indicated an improvement in their sales prospects from a year earlier, and no organizations showed symptoms of demand decline. Despite this, roughly 40% of businesses have current sales that are lower than pre-pandemic levels. Foreign sales, notably to the United States, have a bright future. A separate consumer survey indicated high purchasing intentions, indicating pent-up demand, with some respondents preparing to dip into their pandemic savings. Consumer spending may increase the most in hard-hit services such as restaurants, tourism, and the cinema. Consumer expectations for home price growth have also risen, as have predictions for near-term inflation. The BOS survey of 100 businesses was conducted between May 11 and May 28, when COVID-19 incidents were declining but third-wave limitations in Ontario and Quebec remained in effect. Julie Gordon contributed reporting from Ottawa; Fergal Smith contributed supplementary reporting from Toronto; and Franklin Paul edited the piece./nRead More

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