Construction spending in the U. S. posted a plunge in February grabbing the lowest level in more than seven years, signifying that this part of the economy continues to swim in the troubling waters of recession.

The 1.3 percent fall to $846.2 billion, the lowest since November 2002, after a revised 1.4 percent plunge in January that was more than twice as large as initially anticipated, Commerce Department figures showed today in Washington.

Also, data shows that the net construction spending slipped by 1.3 percent from January to a seasonally adjusted annual rate of $846.2 billion, the department revealed. However, economists had speculated a fall of 1.5 percent.

Construction spending was highly lower for the month -- off 12.8 percent -- compared to February 2009 when spending valued at $970.4 billion.

Private residential construction expenditures on a seasonally adjusted annual basis is reported to drop by 1.2 percent from the previous month to $553.5 billion.

Moreover, the U. S. economy growth rate is posted to be 5.6 percent in the final quarter of 2009, the Commerce Department reported last week.