Official figures have confirmed a sharp decline in economic growth, driving the Australian dollar decisively below 70 US cents for the first time in six years.

The Australian Bureau of Statistics (ABS) said the country's gross domestic product (GDP) grew by 0.2 per cent in the three months to June, the weakest rate of economic growth since the March quarter of 2013.

Today's figures are a sharp deterioration from the 0.9 per cent growth recorded in the March quarter and also significantly worse than the 0.4 per cent growth economists had expected.

The ABS said reduced mining and construction activity weighed on growth, along with declining exports.

Breaking news in your inbox Subscribe to get ABC News delivered to your email, including alerts on major breaking stories, plus the day's top news and analysis.

Along with the first quarter GDP in 2013, it was the weakest growth since early 2011, which was affected by the severe floods in Queensland, and the equal second weakest since the Global Financial Crisis-affected contraction in December 2008.

In nominal terms — with the effects of inflation excluded — GDP growth was 1.8 per cent, the weakest figure since 1962.

Mining production slipped 3 per cent in the latest quarter, while net exports detracted 0.6 per cent from GDP growth.

The Australian dollar twice dipped briefly below 70 US cents in the hours before the data was released, but fell to 69.86 US cents immediately after the ABS data was published - the first time the currency had fallen to that level since 2009.

By 5:00pm (AEDT) the dollar had recovered slightly to 70.3 US cents.

Growth figure in line with budget expectations: Hockey

Treasurer Joe Hockey defended the growth figure, saying it was in line with budget expectations.

"Today's national accounts show the Australian economy is growing well despite the biggest fall in our terms of trade in more than 50 years," he said.

"At a time when other commodity-based economies like Canada and Brazil are in recession, the Australian economy is continuing to grow at a rate that meets and sometimes beat our most recent budget forecasts."

Mr Hockey blamed one-off factors such as weather-related interruptions to mineral exports for the softer-than-expected figures.

He said there was evidence the transition away from a reliance on mining investment was well underway.

"Looking forward, we are already two months into the first quarter of a new financial year, and the Government's May budget is already adding momentum to the Australian economy.

"Business conditions outside the mining sector have risen to their highest level in almost five years."

'Statistical payback' shows economy remains below trend

Before today's data was released, several analysts said it was likely to overstate the weakness of the Australian economy, just as the first quarter's figures overstated the country's economic strength.

"A lot of it appears to be statistical payback," Commonwealth Bank chief economist Michael Blythe told Reuters immediately after the figures came out.

"Nevertheless ... it's a soft outcome whichever way you cut it and the economy remains below trend.

"As long as we're digesting this downturn in mining and investment, that's going to continue."

The economy was saved from a contraction by growth in domestic demand with household consumption growing by 0.5 per cent.

Government consumption was another strong contributor — spurred on by increased defence spending — growing at 2.2 per cent for the quarter and 4 per cent over the year.

Citi chief economist Paul Brennan said there were concerns about the ongoing strength of spending and doubts that government and household consumption would continue to hold up the economy.

"The former cannot be relied upon indefinitely and the latter is moderating from weaker income growth and households adding more disposable income to savings," Mr Brennan said.

"The detail of household consumption showed less expenditure on discretionary items and more on food, shelter, health care, education and insurance.

"All other expenditure-side components were flat or negative contributors to GDP."

Shorten says GDP figures 'gravely concerning'

Mr Brennan also warned that the weakest nominal GDP growth in more than 50 years was a significant worry.

"Nominal GDP per capita — a proxy for living standards — was flat in the quarter and barely rose over the past 12 months.

"This compares with average growth of 5.9 per cent in the past three decades and 3.1 per cent since the GFC."

Opposition Leader Bill Shorten described the latest GDP figures as "gravely concerning".

"It is now a cemented trend under [Prime Minister Tony] Abbott and his Liberals," he said.

"Every quarter since Mr Abbott and his Liberals got elected two years ago, economic growth has come in below trend and this explains why we have the highest number of unemployed people in Australia in 20 years — 800,000 people.

"Our growth is down under Mr Abbott and what is happening is Australians are losing their jobs as a result."