Chief executives are less confident about the state of the economy today than they were in the first quarter of this year, according to a quarterly survey of CEOs conducted by the Conference Board in the U.S.

The U.S. CEO Confidence Measure fell to 55 in the second quarter, down from a reading of 62 in the first quarter. Any number more than 50 reflects more positive than negative responses.

“While overall confidence remains relatively positive, the latest reading reflects growing concerns that U.S. economic growth may be slowing down,” says Lynn Franco, director of The Conference Board’s Consumer Research Center. “And, while the outlook for corporate profits remains optimistic, rising interest rates and oil prices may curb business leaders’ projections.”

Along with the slide in confidence, CEOs’ assessment of current conditions deteriorated over the last quarter. About 44% claim current economic conditions have improved, down from nearly 59% last quarter. In assessing their own industries, about 38% say conditions are better, down from approximately 57% last quarter.

The CEOs’ short-term outlook has also deteriorated. Thirty-seven per cent expect economic conditions to improve in the coming months, down from 43% last quarter. In their own industries, 35% are anticipating an improvement, down from 47% last quarter.

On the issue of profit expectations over the next 12 months, 68% of chief executives anticipate increases. Those in the non-durable goods industry are the most optimistic, with 75% expecting profits to increase. Executives in the durable goods industry are slightly less optimistic, with 71% anticipating a rise in profits. Only 61% of CEOs in the service industry expect profits to increase.

Among chief executive officers who expect profits to increase, 51% cite an increase in market/demand growth as the main source of improvement, 30% identify cost reductions, 16% point to price increases and the remaining 4% believe technology will drive profits up.