Depends on the timeframe you use. If you measure from the price peak, then transactions have fallen. If you measure from the beginning of the year, transactions are up significantly. Stats are always deceptive =)

On the transaction point, it's important to realize that as services consolidate the transactions visible to the blockchain may fall even though real transactions increase. For example all the trades between mtgox or instawallet or flexcoin accounts won't show up on the chain.