After five months of stagnation, Canada’s gross domestic product jumped 0.6% in July, with significant gains registered across the economy. Statistics Canada said this was the largest monthly gain in GDP since April 2002.

Manufacturers led the pace, with the strongest gain in 12 months, followed by the mining and real estate sectors. A surge in manufacturing, mining and utilities output helped industrial production regain some strength after five consecutive monthly declines. Industrial production advanced 1.2%, compared with a smaller U.S. increase of 0.7%.

In a separate release, StatsCan reported that manufacturers’ prices were up 0.3% in August, but down 2% on an annual basis, largely because of the continuing effect of a strong Canadian dollar against the U.S. dollar. Without the dollar’s influence, the Industrial Product Price Index would have risen 1.1% rather than falling 2% from a year ago.

“That’s the hallmark of a stronger C$,” says CIBC World Markets. “Manufacturing GDP may be rising again, but with these price impacts, it1s less clear that profits are picking up to nearly the same extent.”

BMO Nesbitt Burns Inc. said the C$ was slightly higher versus the US$ over the month, “but this had only a modest impact on industrial prices, which would have risen by 0.4% excluding the movement in
the currency. The loonie’s first-half surge had a much larger impact on the year-over-year reading. Ignoring the impact of the dollar, industrial prices would have been up 1.1% rather than down 2.0%.”

Like in July, higher prices for petroleum and coal, lumber, pulp and paper and metal were the major contributors to the monthly increase in the IPPI, while the prices for meat, fish and dairy products continued to fall.

On Monday, Toronto stocks were lifted by renewed strength in tech and gold issues. The S&P/TSX composite index rose 12.54 points to close at 7,445.62.

In New York, the tech-heavy Nasdaq composite index advanced 32.49 points to 1,824.56. The blue-chip Dow Jones industrial average gained 67.16 points, or to 9,380.24. The broader S&P 500 index rose 9.73 points to 1,006.58.