Report issued by the Israel Export and International Cooperation Institute (IEICI) show that Israel's exports fell 7% in the second quarter of 2014 to US$13.6 billion.

The falls, according to the IEICI were across the board in all areas. The report described the decline in the second quarter as "a downturn in trends in almost every export sector," According to the report industrial exports fell 4% to US$11.2 billion, diamond exports fell by 16% to US$2.1 billion, as agricultural exports fell 9% to US$315 million.

The IEICI noted that the fall in exports, in the second quarter of 2014 stemmed, among other things, from a substantial fall in the exports of chemicals and electronic components, while pharmaceuticals exports slightly helped to offset the falls. Exports of chemicals fell 13% to US$2.8 billion and exports of electronic components fell 4.5% to US$1.2 billion.

Exports of pharmaceuticals rose 10% to US$1.6 billion. A geographical analysis of exports found "a worrying picture of the size of exports to the US," the Israel Export Institute said. In the past five quarters there has been a fall in sales to the US market.

In the second quarter of 2014 exports to the US fell 2% compared with the corresponding quarter of 2013 to US$2.5 billion (about 22% of all exports). This follows a more significant 11% fall in exports to the US in the first quarter, 7% in the fourth quarter of 2013 and 24% in the third quarter of 2013.