Good economic news north and south of the border helped North American markets post solid gains today.

In Canada, stronger than expected GDP buoyed Toronto stocks, as the TSE 300 advanced 48 points to close at 7,690.

The GDP optimism was assisted by positive earnings reports from several big TSE names.

Biovail reported better than expected results and ended the day up 2.7% at $72.

Manulife, which reported a 23% rise in second-quarter earnings, ended the day up a big 4.5% at $46.14.

As well, Canada’s largest computer consulting firm, CGI, more than doubled its profits this quarter and that led to a 24¢ increase in its share price today. CGI closed at $8.77.

Overall,12 of the TSE’s14 sub-indices advanced on the day. Conglomerates and transportation led the way with advances of 1.9% and 1.8% respectively. Only golds and utilities posted declines.

The transportation sub-index was up on a 3.11% advance in the shares of CP, which laid out the number of shares of each division shareholders will receive when they are spun off this fall. CP stock closed at $58.30.

The CDNX also advanced today, climbing nine points to close at 3,063. Volume was 37 million shares. Market trend was just about neutral, though, with 204 issues advancing and 191 declining.

The GDP announcement seemed to help the loonie, too. It advanced 0.06% today, closing at US65.40¢.

In the United States, the U.S. Commerce Dept announced that consumer spending in that country rose 0.4% last month. Considering that consumers are keeping the world’s largest economy afloat while manufacturing suffers through a recession, it was good news indeed.

The Dow Jones industrial average advanced a strong 1.16%, or 121 points, at 10,523. The Nasdaq composite index added nine points to close at 2,027, while the S&P 500 gained seven points to 1,211.