California is headed for recession as a steep drop in construction spending continues to take its toll, according to an economic report released Monday.

The Chapman University index of California leading employment indicators fell for the seventh straight quarter to 102.3 for the first quarter of 2008. That was down from 114 in the fourth quarter and 132 in the first quarter of 2007.

An index reading below 100 indicates the economy is losing jobs. The last time the index reading was as low as 102 was in the first quarter of 2003, after the end of the last recession.

The chief culprit behind the drop in the indicator index was a 14 percent drop in construction spending — which offset a 7.7 percent rise in the value of exports.