Outlook dims as export orders fall The mainlands economic recovery showed more signs of sputtering on April 23,

with a private survey of manufacturers showing a sharp fall in export orders and the industry ministry warning against expectations of vigorous growth. The HSBC flash manufacturing purchasing managers index (PMI) for China fell to a two-month low of 50.5 in April, compared with the final reading of 51.6 in March. For the first time since December, the index for export orders fell below 50. A reading above 50 indicates expansion and one below, contraction. The new PMI readings suggest stabilization in growth in coming quarters, rather than a strong growth recovery, according to IBUonline analysts. A lack of effective demand, companies reluctance to invest, serious problems with excess capacity, and a difficult operating environment for small and medium-sized companies Falling profitability had curbed companies willingness to expand. Nearly 21 per cent of the companies tracked by the government had suffered losses while those in profit were earning less than a few years ago. IBUonline already knew the problem but still took a positive view on foreign trade business. IBU will give a helping hand to China suppliers and international buyers to complete some trade.