U.S. construction spending dipped in April, amid weakness in public-sector outlays and the steady decline of the housing market.

Separately, a reading on manufacturing showed the sector continues to struggle.

Total construction spending fell by 0.4% to a seasonally adjusted annual rate of US$1.121 trillion, the U.S. Commerce Department said today. March spending dropped by 0.6%; originally, the government said spending that month tumbled 1.1%.

The 0.4% decrease in April outlays was a little smaller than projected. Wall Street had expected construction spending for the month would decline by 0.5%.

Residential construction spending decreased 2.1% in April to US$442.6 billion. Residential spending fell by 3% in March; it was originally seen down 4.6% for the month. Year over year, residential was 20.8% lower in April.

Non-residential construction spending increased in April, rising 0.7%. Spending climbed on hotels, churches and hospitals despite the softer economy. But private-sector construction spending overall declined by 0.5% to US$823.8 billion. Spending slid 1.1% in March.

Public, or government, construction spending decreased 0.3% in April to US$297.1 billion.

Meanwhile, the U.S Institute For Supply Management said its manufacturing index for May was 49.6, up from 48.6 in April but still below the 50 line that divides expansion from contraction.

The reading by the private research group was better then economists had expected. But it represented a fourth consecutive monthly decline and also showed that price pressures again intensifying.

The report’s prices index rose to 87 from a reading of 84.5 in April.

The ISM’s new orders index stood at 49.7 in May, up from 46.5 in April, while the production index came in at 51.2, compared with 49.1 the preceding month. Meanwhile, hiring ticked up a bit, with the employment index at 45.5, up from April’s 45.4.