Gross domestic product advanced 0.7 percent, the most since March 2004, Statistics Canada said today in Ottawa.
The report indicates the world's eighth-biggest economy may be rebounding from the first half of this year, which saw it teetering on the edge of a recession. Gross domestic product expanded at a 0.3 percent annualized rate in the second quarter, after contracting 0.8 percent in the first quarter.
Prime Minister Stephen Harper, vying for re-election on Oct. 14, has framed his campaign around the notion he can better manage the economy through turbulent times such as the U.S. slowdown and the current crisis in financial markets.
Output from the energy industry jumped 3.1 percent in July, after maintenance work was completed at some of the country's oil facilities. Mining and oil-and-gas extraction gained 4.2 percent during the month.
Manufacturing advanced 1.3 percent, while construction was unchanged, the statistics agency said.
Statistics Canada said separately today that falling petroleum prices led to a 0.2 percent drop in its industrial product price index in August, and a 7.7 percent drop in its price index for raw materials.