Johannesburg - Trade conditions measured by the Trade Activity Index (TAI), fell markedly into negative territory in December, to 44 from 57 in November.
The SA Chamber of Commerce and Industry (Sacci) said that although the dip in December is a normal seasonal occurrence, the TAI declined by 13 points between November and December 2010 compared to a nine-point decline in December 2009.
The December TAI was however still two points above the December 2009 TAI.
Sacci says the improvement in trade conditions since September 2010 is likely to continue after the festive season break.
The improvement in the levels of the sales volumes index since September 2010 was severely disrupted in December. The index fell 16 points to 47.
"As intermediary business trade typically slows down in December, the decline does not reflect a permanent setback," Sacci said.
The new orders index fell to 43 from 58 in November, the backlog on orders received index fell to 28 from 36, the supplier deliveries index was recorded at 43 in December from 58 in November.