Exceeds economists’ forecasts, down in 11 industries representing two thirds of total sales.
Imports rose 1.2% to $50.9 billion with gains in six of 11 sectors.
Analysts say trade-driven boost was likely a temporary factor, particularly with weakening global economic conditions.
Result topped the 0.2% gain that had been expected
Smaller-than-expected deficit came as exports rose 1.3% for the month.
Growth came as sales gained in six of the seven subsectors.
Sales were up in 12 of 21 industries, representing 56.4% of the sector.
Manufacturing and construction sectors had the lowest shares, at 14.4% and 12.8%.
Increase outpaces US job creation, figures show an increase of just 20,000 new positions.
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.