The Indiana University forecast, which mirrored other economic outlooks, includes:
* Inflation will be slightly above 2 percent in 2012.
* Consumer spending will rise moderately.
* The housing sector finally has hit bottom nationally, but the large surplus of unsold homes, coupled with persistent unemployment, will keep home construction and prices from rebounding much this year.
* The Federal Reserve will continue to maintain its near-zero position on short-term interest rates well into 2013.
* Mortgage rates will remain at historic low levels. Lenders will continue to be tight with credit.
* In absence of major supply or security disruptions, energy prices will be relatively flat in 2012, with oil prices averaging around $90 per barrel.