Statistics Canada reported today that Canadian gross domestic product rose 0.4% in July, a reading which was slightly ahead of expectations.

BMO Nesbitt Burns notes that this is the ninth consecutive increase for monthly GDP, and GDP is now 3.4% above year-ago levels. “The increase was driven by the goods sector, which managed to rise for the first time in three months. While there were gains in the service sector, they were much more muted,” it says. Utilities were strong, due to the heat wave in July, manufacturing was solid, and the information and communication technology sector recorded a gain too.

“While the numbers for upcoming months may not have quite the same zest, Canada’s economy remained on a roll in July,” says CIBC World Markets. “The rise in manufacturing, following June’s flat outcome, suggests the Canadian factory sector remains in better shape based on the evidence so far than its U.S. counterpart.”

“Today’s GDP numbers indicate that the Canadian economy still had a decent amount of wind in its sails starting the second half of the year. Although domestic demand so far has borne up well, the major risk for Canada is clearly the poor near-term growth outlook in the U.S.,” says CIBC.

“Canadian GDP continues to churn out gains in a tough environment and is on pace for 3.0% growth in Q3. The domestic outlook remains solid, which should keep the Bank of Canada on its tightening path,” says BMO. However, it allows, “The continuing global turmoil remains the main factor that could keep the Bank on hold.”