Washington, Ramadan 19, 1437, Jun 24, 2016, SPA -- New orders to U.S. factories for manufactured goods fell unexpectedly in May, reversing two months of gains, the government reported Friday, suggesting business spending will remain a drag on economic growth in the second quarter. The US Commerce Department said orders of durable goods—expensive manufactured items expected to last at least three years—fell 2.2 percent last month after rising 3.3 percent in April and 2 percent in March. Orders for transportation equipment, which often are volatile, fell 5.6 percent in May, pulled lower by a 34.1 percent plunge in orders for military aircraft and parts. A closely-watched measure of business investment plans—non-defense capital goods excluding aircraft—fell 0.7 percent last month after a 0.4 percent decline in April. Business spending on equipment has declined over the last two quarters, dropping in the first quarter of this year at its fastest pace since early 2009. U.S. manufacturing has been hurt by spending cuts as the energy industry reacts to low oil and natural-gas prices, and by a strong dollar, which makes American products more expensive in foreign markets. Britain’s vote to leave the European Union (EU) on Thursday likely will push the U.S. currency even higher. Economists also say businesses may be reluctant to place orders for durable goods because of uncertainty over the U.S. presidential election in November. --SPA 17:30 LOCAL TIME 14:30 GMT www.spa.gov.sa/w