That's according to the Bureau for Economic Research which released its latest Business Confidence Index earlier on Wednesday.
The index compiled fell to 29 points in the second quarter - that's down from 40 points in the first quarter.
The country slipped in a technical recession for the first time in eight years in the first quarter, hit by weakness in consumer sectors such as wholesale, retail and accommodation.
The institution surveys confidence across the manufacturing and building sector as well as the retail, wholesale and motor trade industries.
