(Fixes dateline)

WASHINGTON, March 30 (Reuters) -U.S. construction spending beat expectations and rose 0.3 percent in February as increases in nonresidential construction overcame drops in residential and federal construction, a government report showed on Friday.

The increase was the biggest since March 2006, when construction spending rose 1.0 percent.

Analysts polled by Reuters anticipated a 0.6 percent drop in construction spending.

Private residential building fell 1 percent in February, which was the 11th straight drop but not as sharp as the 1.7 percent fall-off seen in January.

Nonresidential construction was up 2.3 percent, the largest gain since a 3 percent increase in August of last year.

Total U.S. construction spending of $1.171 trillion was up from the $1.168 trillion from a month earlier. Federal construction spending in February was down 1.8 percent from the previous month.