Canada’s real GDP jumped 0.8% in April, far ahead of expectations, as Canada’s economy continues to surprise economists with its show of strength. This is the seventh consecutive monthly advance and the single largest monthly gain since early 2000.

“This report confirms that the Canadian economy was firing on all cylinders entering the second quarter,” says RBC Financial. “Manufacturing was particularly strong, up 2.4%. Output was up in pretty much all industry sectors from primary and intermediate products to chemicals, food and beverages and motor vehicles. The service side of the economy was also very strong in April, fuelled by continued healthy consumer demand, particularly for housing and household furnishings.”

BMO Nesbitt Burns says, “While temporary factors did help boost production, the foundations underlying the Canadian economy are very solid, and bode well for the rest of the year.”

“Raise the Canadian flag to full mast! This morning’s data on real GDP for April were simply stellar,” trumpets TD Bank. “With today’s results, there are two outcomes on the horizon that look as likely as death and taxes. First, even if growth tallies fall off significantly in the final two months of the second quarter, there is now little stopping Canada’s economic locomotive from registering a second consecutive blistering quarterly increase in real GDP — of roughly 5% — in the April-June period. And, second, the Bank of Canada, which is now staring straight into the barrel of an economy operating at full capacity, will continue to raise interest rates on its next policy announcement date on July 16th — most likely by 25 basis points.”

RBC concurs, noting, “Such an unexpectedly strong all-around performance underlines the widening economic performance gap between Canada and the United States and fully justifies the decoupling of monetary policy between the two countries. As Canadian interest rates continue to pull ahead of U.S. rates in the coming months, look for the Canadian dollar to continue appreciating.”