WASHINGTON, Shawwal 22, 1437, Jul 27, 2016, SPA -- New orders for U.S. manufactured capital goods rose less than expected in June amid weak demand for machinery, suggesting an ongoing downturn in business spending, Reuters reported. Business investment remains soft despite data ranging from retail sales to housing suggesting that U.S. economic growth has regained speed after growth almost stalled early in the year. The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 0.2 percent last month after decreasing 0.5 percent in May. "Up is nice, but there doesn't seem to be a major drive on the part of the companies to invest heavily," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. Weak business spending was acknowledged by the Federal Reserve on Wednesday, as the U.S. central bank kept interest rates unchanged because concerns over inflation, even though it described the near-term risks to the economic outlook as having "diminished." Economists polled by Reuters had forecast the so-called core capital goods orders rising 0.3 percent last month. Prices for U.S. government bonds rose on the data and the Fed's interest rate decision, while the U.S. dollar was little changed against a basket of currencies. U.S. stocks were trading marginally lower later afternoon. Overall orders for durable goods, items ranging from toasters to aircraft that are meant to last three years or more, tumbled 4.0 percent last month, the biggest drop since August 2014, after declining 2.8 percent in May. -- SPA 22:36 LOCAL TIME 19:36 GMT www.spa.gov.sa/w