The value of manufacturing sales fell 1.9 percent in the June quarter, driven by a 5.7 percent drop in meat and dairy sales.
The volume of sales was down 0.7 percent in the quarter, in seasonally adjusted terms, which also reflected falls in meat and dairy sales.
Excluding meat and dairy, volumes rose marginally.
ANZ Bank said there would be considerable further downside to come from falling commodity prices.
The bank said the overall outcome was considerably weaker than that signalled by the upbeat business sentiment measures.