Reuters — U.S. construction spending fell more steeply than expected in December to its lowest level since 2003, dragged down by a sharp drop in private residential and state and local government construction, a government report showed on Monday,

The Commerce Department said construction spending dropped 1.2 percent to $902.5 billion, falling for a second straight month. November’s construction spending was revised down to show a 1.2 percent decline, instead of a 0.6 percent fall.

Economists surveyed by Reuters had forecast construction spending falling 0.5 percent in December. For the whole of 2009, construction spending fell by a record 12.4 percent. [read more…]