"In a nutshell, the news has gotten a little more positive but a little more complex," Simonson said about the variety of factors affecting the national economy.

A major measure of the economy, gross domestic product, has stayed slightly positive. On the other hand, wages are not keeping up with rising inflation; jobs are flat while unemployment climbs; and consumer confidence is waning.

Overall private construction spending was down by 6 percent in May compared to a year earlier, he said. The housing sector was the big drag with a 27 percent drop in construction spending as of May. Simonson doesn't foresee a turnaround until 2009.

Commercial and institutional construction spending is expected to end the year up by between 4 percent and 8 percent, bolstered by growth in a handful of segments. Those five segments and their forecasted growth for 2008 are:

Power (wind farms and power plants), up 15-25 percent;

Energy (primarily refinery upgrades), up 15-25 percent;

Communication (telecom towers and data centers), up 10-15 percent;

Hospitals, up 10-15 percent;

Higher education, up 10-15 percent.

Inflation will continue to take its toll on the price of construction material. The cost of construction material jumped 10.4 percent in June from a year earlier. Concerning price increases, Simonson said, "Unfortunately, I'm looking at a long bout of this."