The economy is expected to improve. A good sign for stocks?

Consumer sentiment towards economic growth is improving. The Conference Board's latest Consumer Confidence survey demonstrates that 43.3% of consumers expect business conditions to improve over the next 6 months. This is no doubt due to the lifting of lockdown restrictions. The only other comparable date was in early-1983 as the 1981-1982 bear market and recession ended. While stocks did eventually experience a short term pullback, this was a good sign for equities over the next 1-2 years:

However, it's not all rainbows and roses on Main Street. While the % of consumers who expect business conditions to worsen over the next 6 months has fallen, it's still relatively high (more than 21%). It all comes down to who you ask. Business will probably remain slow for the travel industry, restaurants, gyms, etc.

But still, the fact that this figure is coming down is an encouraging sign. When the % of consumers who expected worse conditions fell from a high reading, the S&P 500's returns over the next year were mostly bullish: