Real gross domestic product rose 0.3 percent in July after a 0.2 percent increase in June.
Statistics Canada reports that manufacturing and, to a lesser extent, wholesale trade and transportation services were the main sources of growth. There were also increases in utilities and the public sector.
Retail trade, mining and oil-and-gas extraction, construction and the finance and insurance sector all decreased.
StatsCan says that manufacturing increased 1.4 percent in July after three straight monthly declines.
Transportation and warehousing services grew 1.8 percent, mainly due to a return to a more normal level of activity in postal services following labour disruptions in June.
Rail, trucking and air transportation also showed growth in July.
Wholesale trade rose 1.5 percent in July, while retail trade fell 0.7.
The output of utilities increased 1.5 percent, as warmer-than-normal temperatures in most parts of the country led to higher demand for electricity.
Construction declined 0.3 percent in July, while activity in the home resale market softened, leading to a 1.1 percent decline in the output of real estate agents and brokers.
Mining and oil-and-gas extraction fell 0.3 percent.
