Trade conditions have deteriorated over the past two months, but business expectations for 2006 remain positive, the SA Chamber of Business (Sacob) said on Thursday.

While trade conditions gradually improved up to November 2005, the SA Trade Activity Index (Satai) had been in negative territory for two consecutive months, Sacob economist Richard Downing said at a press Conference in Rosebank, Johannesburg.

He was speaking at a relaunch of the Absa-Sacob monthly SA trade conditions survey.

"The January survey results imply that trade conditions may not be as vigorous as they were in 2004 and 2005, but expectations are still quite high," Downing said.

"Fewer new orders and a slow down in supplier delivery negatively affected trade conditions in January."

The monthly trade conditions are determined by Sacob and commissioned by Absa.

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SA's official statistics body produces a number of key indicators, including monthly inflation and quarterly GDP figures, unemployment and population counts.

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