Chief executive’s are felling less confident about economic growth in the second quarter, according to a survey released today.

The Chief Executives’ Confidence Measure, which had edged up to 57 in the first quarter of 2006, declined to 50 in the second quarter, the U.S. Conference Board reports in its latest survey.

A reading of more than 50 points reflects more positive than negative responses. The survey includes about 100 U.S. business leaders in a wide range of industries.

“CEOs’ confidence has waned in the second quarter and expectations signal slower economic growth in the coming months,” said Lynn Franco, director of The Conference Board Consumer Research Center, in a news release. “However, the majority of CEOs do not foresee slower growth having an adverse impact on corporate profits.”

CEOs’ assessment of current conditions decreased significantly. Currently, only 27% of CEOs claim current economic conditions are better, down from 49% in the first quarter. In assessing their own industries, business leaders were not as negative, but were less buoyant than last quarter. About 40% say conditions are better, down from 52% last quarter.

CEOs are more pessimistic about the short-term outlook than they were in the first quarter of 2006. Now, only 21% of business leaders expect economic conditions to improve in the coming months, down from 35% last quarter. Expectations for their own industries were also less optimistic, with about 31% anticipating an improvement, down from 35% last quarter.

On the issue of profit expectations over the next 12 months, 75% of executives anticipate increases. However, there are some marginal differences by category of business. Those engaged in the non-durable goods industry are the most optimistic, with 80% expecting profits to increase. Executives in the durable goods industry are a very close second, with 79% anticipating a rise in profits. However, only 66% of CEOs in the service industry expect profits to increase.

Among chief executive officers who expect profits to increase, 52% cite an increase in market/demand growth as the main source of improvement, 26% cite cost reductions, 16% cite price increases and the remaining 6% believe technology will drive profits up.