The Conference Board Measure of CEO Confidence, which had increased to prerecession highs in the first quarter, declined in the second quarter (Q2) of 2017. The Measure now reads 61 points, down from 68 points in the first quarter (a reading of more than 50 points reflects more positive than negative responses), The Conference Board announced in a release.

CEOs’ appraisal of current economic conditions waned, with 60 percent saying conditions were better compared to six months ago, down from 71 percent in the first quarter. Business leaders were also less positive in their appraisal of current conditions in their own industries. Now, just 47 percent say conditions in their own industries have improved, down from 60 percent last quarter, the release said.

“CEO Confidence declined in Q2, but sentiment about the overall economy remains positive,” The Conference Board’s Economics Indicators Director Lynn Franco said. “CEOs are optimistic about the growth prospects for both mature and emerging economies. Seven out of ten CEOs expect profits will increase over the coming year, with market/demand growth and cost reductions the major driving forces.”

Looking ahead, CEOs’ optimism regarding the short-term outlook for the economy moderated due to a greater percentage expressing a “more of the same” sentiment as opposed to foreseeing conditions worsening. Currently, 41 percent expect economic conditions to improve over the next six months, compared to approximately 65 percent last quarter. The outlook for their own industries was also less favorable, with 48 percent of CEOs anticipating an improvement over the next six months, down from 67 percent in the first quarter of this year.

According to the release, CEOs are optimistic about profit expectations for the next 12 months, with about 71 percent expecting profits to increase, compared to 75 percent last year. Executives in the services industries are the most optimistic, with about 75 percent expecting profits to increase. About seven out of ten CEOs in the nondurables and six out of ten CEOs in the durables industries expect an increase in profits.

Results are from surveys fielded from mid-May to mid-June 2017.