Statistics Canada said on Monday that August's jump in gross domestic product was led by an autos-driven rebound in manufacturing and wholesale trade. The rise beat analyst forecasts for a monthly gain of 0.4 percent.
A Statscan analyst said the last time that expansion exceeded this pace was in June 2004 when GDP grew 0.7 percent.
"This report will definitely keep the Bank of Canada on a tightening course," Bank of Montreal senior economist Sal Guatieri said from Toronto.
"The worst of the Canadian dollar's appreciation is behind us, which I think is key for the bank in its interest rate decision," he added, predicting 3.5 percent annualised growth for the third quarter. The Canadian dollar rose to C$1.1759 against the US dollar, or 85.04 US cents - near 14 year highs - from C$1.1779, or 84.90 US cents, at Friday's close.
Rising foreign demand for autos and parts led manufacturing growth, but production of plastics, rubber and fabricated metal products also rose.