Statistics Canada says real gross domestic product was essentially unchanged in July, following a 0.2 percent decline in June.
The agency says services-producing industries gained 0.1 percent in the month, while goods-producing industries contracted 0.3 percent.
The manufacturing sector was the largest negative contributor for the month as it fell 1.5 percent.
After moving lower in June due to forest fires, Statistics Canada says, the mining and quarrying sector, excluding oil and gas, as well as the accommodation and food services sector rose in July.
With oil and gas excluded, the mining and quarrying sector increased 4.2 percent in July, while accommodation and food services gained 2.3 percent.
Statistics Canada says its early estimate for August pointed to an increase of 0.1 percent for the month with increases in the wholesale trade and finance and insurance sectors, partly offset by decreases in the retail trade and oil and gas extraction sectors.