Growth in July means the sector had a good third quarter.
Economists had expected an increase of 0.1 per cent in June.
An improvement over April’s 1.1% drop and ahead of economists’ projections.
Manufacturing employment was down by 18,000, virtually unchanged compared with a year ago.
Economy grew at annualized pace of 1.3 per cent in Q1 2018, compared to 1.7 per cent in Q4 2017.
Statistics Canada says core measure above 2% for first time in six years.
Much of the growth came from price appreciation but volumes were up.
Rebound in the mining and oil and gas extraction sector, gains 2.4% for the month.
Advances in 14 of 21 industries, representing 72.2% of the sector.
Surplus with the United States narrowed to $2.6 billion compared with $2.9 billion in January.
Growth in the fourth quarter was driven by a 2.3% increase in business investment.
Net decline helped push the national unemployment rate up to 5.9%.
Sector gained 1.8%, the largest monthly increase since February 2014.
Gains were made in six of seven subsectors, sales volumes gained 1.2%.
Manufacturing profits up 11.2% from the second quarter to $14.4 billion.