Sources attributed the fall to political uncertainty ahead of general elections in both countries.
Hugo Bieber, UK Israel Business chief executive, said he was "surprised" by the results. "I would expect that they are influenced by the elections in both countries. We know that deals were on hold full-stop until after the elections."
A source close to the Israeli embassy emphasised that the dip was unconnected to the BDS movement.
UK-Israel trade amounted to a record-breaking £3.9 bn in 2014, 7 per cent up on the previous year.
