-6This drop in spending was greatest in the second quarter of 2020, when the lockdowns were widespread and stringent. In the second half of the year, as restrictions were relaxed, spending rebounded. The strength came primarily in non-essential goods such as motor vehicles, recreational goods and furniture, as people spent more time outdoors and activity in the housing market picked up.
The Committee’s statement suggests that, based on current information, it appears likely that this normalization can proceed gradually.