Industrial exports, a major growth catalyst for the country's economy, rose by a moderate 0.5% in real terms in the second quarter of the year led by a sharp increase in electronics exports, according to a quarterly report published by the Israel Manufacturers' Association on Sunday. 

",Intel Israel and exports of electrical components lifted export data but the majority of industrial exports are still in decline said Ruby Ginel, deputy director of the economics and regulation division at the Israel Manufacturers' Association. "In the second quarter of this year, industrial exports grew by a moderate 0.5% in real terms to $8.4 billion in comparison with the first quarter."

Ginel added that the modest increase in exports in the second quarter was led the 11% rise in high-tech exports, which was driven by the sharp jump of 66% in exports of electrical components and the start of operations of the new Intel plant in Kiryat Gat. Not including exports of the electronics component sector, industrial exports dropped 4% in real terms in the second quarter of the year. 

"Despite the moderate rise in exports in the second quarter of this year, the industry has lost more than $ 6billion in export volume since the beginning of the crisis in September 2008 until June 2009," said Ginel.

Sector by sector analysis of the quarterly report showed that in the mixed hi-tech sector, which includes, chemicals, machinery and equipment, exports plunged 5% in real terms, led by a sharp drop of 20% in real terms in the chemicals sector. From the beginning of the year, exports within the mixed high-tech sector fell at a accumulative rate of 25%.