Evidence appears to be mounting that the economy may have contracted even further in the June quarter than it did in the first three months of the year.
Gross Domestic Product shrank 0.3% in the March quarter, and most economists have been picking a similar figure for the three months to June.
However, a sizeable drop in export volumes contained in terms of trade data released on Wednesday, coupled with weak construction data out earlier this week, suggests it could be worse.
Export volumes fell 3.7% due to the drought, and import prices rose 4.8% due to high oil prices.
The terms of trade fell 0.5%, which although smaller than expected was also the first in two years.
