Confidence among U.S. CEOs waned at the start of the third quarter as business leaders anticipated smaller gains in sales, employment and equipment purchases, Bloomberg reported.

A private survey, the Young Presidents’ Organization (YPO) gauge of sentiment, dropped to 61.1 in July from April’s record-high 64.1 reading. A figure greater than 50 shows that the CEOs’ outlook was more positive than negative.

“CEOs are concerned that the slower growth registered in the first half of this year might continue through year-end,” YPO member Dave Maney said in a statement. “The relatively modest decline would indicate that CEOs have grown cautious, rather than pessimistic.”

The U.S. economy cooled in the first six months of the year as higher food and fuel costs strapped consumers facing slow job growth.

Forty-eight percent of respondents said sales will increase in the coming 12 months, and 21 percent anticipate demand will shrink, the nonprofit service organization’s survey showed.

Respondents said hiring will pick up by July of next year at about 36 percent of businesses, down from the 42 percent of respondents who said they planned to boost employment in the prior period.