Canadian gross domestic product increased by 0.6% in July, recovering from a 0.5% drop in June, according to TD Economics.
There were gains of 1.2% in the goods-producing sector and 0.3% in the service sector.
There were also solid gains in manufacturing (1.1%) and in mining, which posted an increase of 3.5%, mostly in the potash and coal mining sectors.
"After June's major setback related to the flooding in Alberta and a province-wide construction strike in Québec, a July bounce back was in the cards," a TD Economics report states.
"Looking ahead, the strong July reading puts Q3 off to a strong start and is consistent with our call for real GDP to increase 2.3% (annualized) in the third quarter – ahead of the tepid 1.7% Q2 showing."
TD Economics is forecasting real GDP growth to accelerate throughout the remainder of 2013 and exports to grow.
