According to the U.S. Department of Commerce, spending for residential construction in 2008 dropped more than 27 percent from its level in 2007.

In a report released today, the Department of Commerce said that for 2008, total construction spending decreased more than 5 percent and was estimated at $1.079 trillion, compared with $1.137 trillion in 2007.

Residential construction decreased to $358.4 billion, which was 27.2 percent less than the $492.5 billion total in ’07. Private construction spending fell 9.4 percent in 2008. The Commerce Department recorded $770.4 billion in private construction spending for 2008, compared with $850 billion in 2007.

In contrast, the value of public construction in 2008 was $308.5 billion, or 7.4 percent above the $287.1 billion spent in 2007. Educational construction was up 7.9 percent and highway construction was 6.5 percent higher.

The nation’s manufacturing activity also contracted in January, the 12th consecutive monthly decline. However, according to a report that was released today, the rate of decline has slowed, CNNMoney reported.

The Institute for Supply Management said its manufacturing index was 35.6 in January. Any reading below 50 indicates a slowdown, and a reading below 41 is typically associated with a recession.