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FXStreet reports that Lee Sue Ann, an economist at UOB Group, offers her view on the upcoming FOMC meeting (Wednesday).

“The “talk about the talk” about QE tapering and updated dot plot during the June FOMC could set in motion for taper discussion.”

“We expect the Fed to keep its current policy stance unchanged in the July FOMC and the Jackson Hole Symposium (26 August) could see the first hint of taper and we expect first taper to be done in December 2021.”

eFXdata reports that Citi's FX technicals flag their bias for EUR/USD upside:

"i). the divergence between real yields and the USD-index, 

ii). triple negative momentum divergence on the USD-index ahead of pivotal resistance, and 

iii). momentum flagging ahead of good supports on EURUSD".

The Conference Board announced on Tuesday its U.S. consumer confidence edged up 0.2 points to 129.1 in July from 128.9 in June. This was the highest reading since February 2020.

Economists had expected consumer confidence to ease to 123.9.

June’s consumer confidence reading was revised up from the originally estimated 127.3.

The survey showed that the present situation index rose from 159.6 in June to 160.3 this month. Meanwhile, the expectations index edged down from 108.5 last month to 108.4 in July.

“Consumer confidence was flat in July but remains at its highest level since February 2020,” noted Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ appraisal of present-day conditions held steady, suggesting economic growth in Q3 is off to a strong start. Consumers’ optimism about the short-term outlook didn’t waver, and they continued to expect that business conditions, jobs, and personal financial prospects will improve. Short-term inflation expectations eased slightly but remained elevated. Spending intentions picked up in July, with a larger percentage of consumers saying they planned to purchase homes, automobiles, and major appliances in the coming months. Thus, consumer spending should continue to support robust economic growth in the second half of 2021.”

S&P Dow Jones Indices (S&P DJI) reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, surged 17.0 percent y-o-y in May, following a revised 15.0 percent y-o-y climb in April (originally a 14.9 percent y-o-y jump).

Economists had expected a climb of 16.4 percent y-o-y.

Phoenix (+25.9 percent y-o-y), San Diego (+24.7 percent y-o-y) and Seattle (+23.4 percent y-o-y) recorded the highest y-o-y advances among the 20 cities in May. Overall, all 20 cities reported greater price gains in the year ending May 2021 versus the year ending April 2021.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, soared 16.6 percent y-o-y in May, following a 14.8 percent y-o-y surge in the previous month. This was the biggest annual advance on record.

“We have previously suggested that the strength in the U.S. housing market is being driven in part by reaction to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. May’s data continue to be consistent with this hypothesis,” noted Craig Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P DJI. “This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years. Alternatively, there may have been a secular change in locational preferences, leading to a permanent shift in the demand curve for housing. More time and data will be required to analyze this question.”

• IMF's 2021 global growth forecast is unchanged from April
• A 0.5 ppt upgrade for 2022 projection was largely due to forecast upgrade for advanced economies
• U.S. 2021 growth forecast was revised to 7.0% from 6.4% in April and 2022 growth forecast was revised at 4.9% from 3.5% seen previously
• Eurozone 2021 growth forecast was revised to 4.6% from 4.4% in April and 2022 growth forecast was revised at 4.3% from 3.8% previously
• China's 2021 growth forecast was revised to 8.1% from 8.4% in April and 2022 growth forecast was revised to 5.7% from 5.6% previously
• UK 2021 growth forecast was revised to 7.0% from 5.3% in April and 2022 growth forecast was revised to 4.8% from 5.1% previously 
• Recent price pressures for most part reflect unusual pandemic-related developments and transitory supply-demand mismatches
• Inflation is expected to return to its pre-pandemic ranges in most countries in 2022 once these disturbances work their way through prices
• Central banks should generally look through transitory inflation pressures and avoid tightening until there is more clarity on underlying price dynamics
• Risks around the global baseline are to the downside
• Slower-than-anticipated vaccine rollout would allow the virus to mutate further
• Financial conditions could tighten rapidly, for instance from reassessment of monetary policy outlook in advanced economies if inflation expectations increase more rapidly than forecast

U.S. stock-index futures traded mixed on Tuesday, as investors digested the U.S. data on durable goods orders for June and the latest batch of Q2 earnings reports, while the Federal Reserve prepared to begin its two-day policy meeting. 

Global Stocks:

(company / ticker / price / change ($/%) / volume)

McDonald's (MCD) initiated with a Buy at Guggenheim; target $270

Merck (MRK) assumed with a Buy at Truist; target $92

Pfizer (PFE) assumed with a Buy at Truist; target $43

Starbucks (SBUX) initiated with a Neutral at Guggenheim; target $125

AT&T (T) downgraded to Hold from Buy at Argus

The U.S. Commerce Department reported on Tuesday that the durable goods orders rose 0.8 percent m-o-m in June, following a revised 3.2 percent m-o-m jump in May (originally a 2.3 percent m-o-m climb). 

Economists had forecast a 2.1 percent m-o-m increase.

According to the report, the June gain was primarily attributable to the increased orders for transportation equipment (+2.1 percent m-o-m) and computers and electronic products (+1.0 percent m-o-m). Meanwhile, orders for durable goods excluding transportation edged up 0.3 percent m-o-m in June, following a revised 0.5 percent m-o-m increase in May (originally a 0.3 percent m-o-m advance), missing economists’ forecast for a 0.8 percent m-o-m gain.

Elsewhere, orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 0.5 percent m-o-m in June after a revised 0.5 percent gain m-o-m in May (originally a 0.1 percent m-o-m fall). Economists had called for a 0.7 percent m-o-m increase in core capital goods orders in June.

Shipments of these core capital goods went up 0.6 percent m-o-m in June after an unrevised 0.9 percent m-o-m growth in the prior month.

On a y-o-y basis, durable goods orders were up 26.8 percent, while orders, excluding transportation, were up 18.0 percent.

USD gained against most other major currencies in the European session on Tuesday as investors remained cautious, awaiting the beginning of the Federal Reserve's policy meeting. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged up 0.01% to 92.66.

The Fed’s two-day meeting will kick off later today and its outcomes will be announced Wednesday at 18:00 GMT, and the Fed's Chairman Jerome Powell will follow with a press conference a half-hour later.

Market participants hope to get hints on the Fed’s outlook for stimulus, given that inflation has been growing steeply in recent months. However, most do not expect that the policymakers will reveal a specific date on when the reduction of the Fed’s $120 billion in monthly asset purchases will begin. 

Teunis Brosens, the Head Economist at ING, notes that net lending to businesses remains weak in Eurozone, but this is largely TLTRO-related, and may improve in the months ahead.

"In July, the eurozone M3 money measure increased by €89bn (seasonally adjusted), which is well above the pre-pandemic monthly average, but nothing special since March last year. The main driver continues to be the European Central Bank's asset purchase programme, as it has been since March 2020. In net terms, governments (indirectly, as the ECB only buys on secondary markets) borrowed €79bn from the Eurosystem in June, leading to the equivalent sum in money creation."

"Turning to bank lending, net bank lending to eurozone households remains strong; in fact June net lending surpassed €25bn, registering the highest monthly increase since September 2007. Low interest rates and returning consumer confidence are contributing to buoyant housing markets and mortgage demand in many eurozone countries."

"This also means that banks need not worry too much about their TLTRO lending benchmarks just yet. The “additional special reference period”, measuring borrowing to businesses and non-mortgage borrowing to households, runs until December (and then determines the TLTRO rate received by banks from June this year until June '22."

Raytheon Technologies (RTX) reported Q2 FY 2021 earnings of $1.03 per share (versus $0.39 per share in Q2 FY 2020), beating analysts’ consensus estimate of $0.93 per share.

The company’s quarterly revenues amounted to $15.880 bln (+12.9% y/y), roughly in line with analysts’ consensus estimate of $15.833 bln.

The company also raised its guidance for FY 2021, projecting EPS of $3.85-4.00 versus its prior guidance of $3.50-3.70 and analysts’ consensus estimate of $3.82 and revenues of $64.4-65.4 bln versus its prior guidance of $63.9-65.4 bln and analysts’ consensus estimate of $65.39 bln.

RTX rose to $87.40 (+1.69%) in pre-market trading.

FXStreet reports that FX Strategists at UOB Group suggest that NZD/USD now faces some consolidation in the 0.6920-0.7030 band in the next weeks.

24-hour view: “NZD subsequently dipped to 0.6949 before staging a surprisingly robust advance (high of 0.7010 during NY session). Upward momentum has improved, albeit not by much. NZD could strengthen further but is unlikely to break the major resistance at 0.7030 (minor resistance is at 0.7015).”

Next 1-3 weeks: “We continue to hold the same view from last Friday (23 Jul, spot at 0.6975) where NZD is likely trade within a 0.6920/0.7030 range for a period of time. While shorter-term upward momentum is beginning to improve, NZD has to close above 0.7030 before a sustained advance can be expected. The prospect for NZD to close above 0.7030 is not high but it would remain intact as long as NZD does not move below 0.6960 within these few days.”

General Electric (GE) reported Q2 FY 2021 earnings of $0.05 per share (versus -$0.15 per share in Q2 FY 2020), beating analysts’ consensus estimate of $0.03 per share.

The company’s quarterly revenues amounted to $18.300 bln (+3.1% y/y), beating analysts’ consensus estimate of $17.959 bln.

The company also reaffirmed its guidance for FY 2021, projecting EPS of $0.15-0.25 versus analysts’ consensus estimate of $0.25.

GE rose to $13.43 (+3.95%) in pre-market trading.

3M (MMM) reported Q2 FY 2021 earnings of $2.59 per share (versus $1.78 per share in Q2 FY 2020), beating analysts’ consensus estimate of $2.28 per share.

The company’s quarterly revenues amounted to $8.900 bln (24.0% y/y), beating analysts’ consensus estimate of $8.594 bln.

The company also raised guidance for FY 2021, projecting EPS of $9.70-$10.10 versus its prior guidance of $9.20-$9.70 and analysts’ consensus estimate of $9.85 and total revenues growth of 7-10% y/y, equating to revenue of $34.43-$35.40 bln versus analysts’ consensus estimate of  $34.88 bln. Its prior guidance was for revenue growth of 5-8% y/y.

MMM rose to $203.79 (+1.05%) in pre-market trading.

FXStreet reports that UOB Group’s FX Strategists see prospects for extra gains in USD/JPY on a breakout of the 110.90 level in the short-term horizon.

24-hour view: “Our expectation for USD to ‘move to 110.70’ was incorrect as it dropped to 110.10 during early London hours before trading sideways for the rest of the sessions. The movement is viewed as part of a consolidation phase and USD is likely to trade sideways. Expected range for today, 110.05/110.50.”

Next 1-3 weeks: “As highlighted, upward momentum is beginning to improve but USD has close above 110.90 before a sustained advance can be expected. The prospect for USD to close above 110.90 is not high for now but would remain intact as long as USD does not move below 109.90 within these few days.”

UPS (UPS) reported Q2 FY 2021 earnings of $3.06 per share (versus $2.13 per share in Q2 FY 2020), beating analysts’ consensus estimate of $2.81 per share.

The company’s quarterly revenues amounted to $23.424 bln (+14.5% y/y), beating analysts’ consensus estimate of $23.166 bln.

UPS fell to $207.75 (-1.01%) in pre-market trading.

Peter Vanden Houte, the chief economist at ING, notes that the Eurozone's money growth decelerated to 8.3% y/y in June, but the underlying loan figures reflect a solid housing market and an upturn in business investment.

"Year-on-year money growth (M3) fell to 8.3% in June, down from 8.5% in May."

"The annual growth rate of the most liquid aggregate M1 slightly accelerated to 11.7% in June from 11.6% in May. In the past, this would have been a harbinger for a significant increase in future inflation, but not today, as the information contained in the money growth figures has become difficult to interpret since central banks started to use unconventional monetary policy measures."

"Regarding the counterparts, the annual growth rate of credit to the government decreased to 13.0% in June from 15.4% in May."

"Adjusted loans to the private sector (adjusted for loan sales, securitisation and notional cash pooling) rose 3.0% year-on-year in June from 2.7% in May, with the adjusted loan growth rate to households at 4.0% and to non-financial corporations at 1.9%."

"At the same time, there is a further shift towards longer-term loans to firms."

"Loans up to one year to non-financial corporations actually fell 11.9% year-on-year, while loans with maturities over five years grew 7.2% year-on-year, accelerating from the 6.1% growth rate seen in May. On the one hand, this is due to base effects."

Tesla (TSLA) reported Q2 FY 2021 earnings of $1.45 per share (versus $2.18 per share in Q2 FY 2020), beating analysts’ consensus estimate of $0.98 per share.

The company’s quarterly revenues amounted to $11.960 bln (+98.0% y/y), beating analysts’ consensus estimate of $11.399 bln.

Tesla also reiterated its outlook of achieving 50% annual growth in vehicle deliveries over a multi-year horizon.

TSLA rose to $672.00 (+2.19%) in pre-market trading.

The Confederation of British Industry (CBI) reported on Tuesday its latest survey of retailers showed retail sales volume balance fell to +23 in the year to July from +25 in June, remaining well above the long-run average.

Economists had forecast the reading to ease to +21.

The report also revealed that retail sales volumes were expected to grow at a faster pace (+29) next month. Meanwhile, the retail orders balance increased at the quickest pace since December 2010 (+49 in July, up from +30 in June) but was seen to grow at a slower pace (+39%) in August. In other survey results, overall sales were estimated as normal for the time of year in July (balance of 0 from +23 last month) and were expected to remain broadly in line with seasonal norms next month (+3). Stock levels in relation to expected sales reached another record low in July (-21 from -19, question first asked in August 1983). Relative stock levels were also forecast to remain too low next month (-27).

“Consumer demand continues to support the UK’s economic recovery,” noted Ben Jones, Principal Economist at the CBI. “Retail sales have been at or above seasonal norms for the last four months now, although this picture is not universal, with the clothing and footwear stores in particular yet to see demand recover to usual levels. While demand may be more stable, operational issues worsen. Relative stock levels are at a record low and expected to fall further still, while the number one worry for many firms at the minute is labour shortages throughout the supply chain as staff self-isolate.”

eFXdata reports that MUFG Research discusses its expectations for this week's FOMC policy meeting.

"All in all, the FOMC meeting should prove supportive of the belief of moving toward the point of tapering. Some of the Fed tightening that had been built into market pricing at the short-end of the yield curve since the June FOMC has started to reverse of late but we do not see the meeting further extending that reversal. Longer-term yields have already reversed having reached extreme lows unjustified by broader fundamentals and equity markets. Yields could extend further higher. Assuming progress toward the point of QE tapering remains post-FOMC, the US dollar should remain supported," MUFG notes.

CNBC reports that according to analysis from the U.S.-based Peterson Institute for International Economics, China’s purchases of U.S. goods are still falling short of trade agreement levels, even as overall Chinese imports from the U.S. have surged.

In January 2020, before the coronavirus pandemic and under former U.S. President Donald Trump, China agreed to buy at least $200 billion more in U.S. goods and services over the next two years, relative to the 2017 level. Known as the phase one trade deal, the purchase agreement included specific agriculture, energy and manufactured products.

However, as of June, both Chinese and U.S. government data indicated that China had bought less than 70% of the year-to-date target, according to estimates from Peterson Institute senior fellow Chad P. Bown.

Agriculture purchases again came the closest to meeting agreement levels, at 90% of the target, according to U.S. data that Bown cited.

China’s imports from the U.S. in the first half of the year rose to $87.94 billion, up 55.5% from the same period in 2020 and up nearly 49.3% from the first six months of 2019.

Meanwhile, China exported $252.86 billion worth of goods to the U.S. in the first half of 2021 — up 42.6% from the same period in 2020 and a rise of 26.8% from the first half of 2019.

As a result, the U.S. remains China’s largest trading partner on a single-country basis, despite trade tensions that escalated under the Trump administration.

FXStreet reports that Lee Sue Ann, Economist at UOB Group, reviews the latest ECB event.

“What was supposed to be a non-event July monetary policy meeting at the ECB, turned into a key focus point of the week following the release of its strategic review, where the Governing Council agreed a symmetric inflation target of two per cent over the medium term. As expected, the ECB, on Thursday (22 July), revised its forward guidance on rates, taking a more dovish stance.”

“The latest decision reinforces our view that the ECB will have to remain highly accommodative for some time due to subdued economic activity held back by services, and the longer-term challenges related to the COVID-19 pandemic. While not a discussion at this juncture, the ECB’s dovish bias would suggest that the total reduction of the monthly purchases in 2022 will be less than previously expected, pushing out any speculation on tapering.”

Reuters reports that Bank of Japan Governor Haruhiko Kuroda said the central bank will roll out steps deemed important for dealing with climate change, and stand ready to modify them as needed.

Kuroda said the BOJ must assist private-sector efforts to combat climate change as increasing natural disasters and a transition towards a carbon-free society could affect economic, price and financial developments in the long run.

Uncertainty over what is considered "green" and debate over how best to deal with climate change should not discourage central banks from acting now rather than later, he said.

The BOJ edged closer to uncharted territory earlier this month by laying out details of a new scheme aimed at funding activities for combating climate change. read more

The central bank also released a list of other steps it will take on climate change, including a plan to start buying green bonds using its small pool of foreign reserves.

According to the report from European Central Bank, the annual growth rate of the broad monetary aggregate M3 decreased to 8.3% in June 2021 from 8.5% in May, averaging 8.7% in the three months up to June. Economists had expected a 8.2% increase in June.

The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, stood at 11.7% in June, compared with 11.6% in May. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) was -1.3% in June, compared with -0.7% in May. The annual growth rate of marketable instruments (M3-M2) decreased to 9.0% in June from 11.5% in May.

Annual growth rate of adjusted loans to households stood at 4.0% in June, compared with 3.9% in May

Annual growth rate of adjusted loans to non-financial corporations stood at 1.9% in June, unchanged from previous month.

FXStreet reports that FX Strategists at UOB Group said that USD/CNH is still expected to keep the trade between 6.4400 and 6.500 for the time being.

24-hour view: “Yesterday, we highlighted that we ‘see chance for USD to test 6.4900’ but we were of the view that ‘the major resistance at 6.5000 is unlikely to come into the picture’. Our view was not wrong as USD rose to 6.4945 before pulling back sharply. The pullback has room to extend lower but any weakness is expected to encounter solid support at 6.4700 (minor support is at 6.4740). Resistance is at 6.4880 followed by 6.4940.”

During today's Asian trading, the dollar rose slightly against the euro and fell against the japanese yen.

Traders are waiting for the results of the meeting of the US Federal Reserve System, which will be announced on Wednesday.

The dollar has been strengthening since mid-June, after the Fed sharply raised its forecasts for the current year and pushed back the time frame for raising key rates.

The situation with the spread of a new variant of coronavirus is also in the focus of attention, amid fears that the rapid growth of diseases and possible related restrictions may slow down the recovery of the global economy.

The Australian dollar fell by 0.4% against the US dollar. The Australian currency remains near the $0.74 mark, the lowest since the end of November 2020, after falling by about 0.3% last week amid the strengthening of the US dollar.

The ICE index, which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose by 0.06%.

Bloomberg reports that China’s rapid economic recovery in the first half of the year was fueled by manufacturing-heavy provinces on the eastern coastline of the country, widening the gap with inland regions.

Five of the six best-performing provinces in the first six months of the year were from the southern and eastern parts of China, including major manufacturing and export hubs Zhejiang, Jiangsu and Guangdong.

Export growth has been surprisingly resilient this year, surging 38.6% in dollar terms in the first half of the year as the pandemic fueled demand for Chinese-made goods. That’s helped to underpin strong economic growth of 12.7% in the period.

The central province of Hubei, which was the epicenter of the pandemic, saw the size of its economy expanding 28.5% in the first half of the year from the same period a year ago, the fastest among all localities, largely due to an extremely low base of comparison in 2020.

Twenty-eight of China’s 31 provincial-level jurisdictions have released first-half economic data so far, with Hebei, Xinjiang and Tibet yet to publish their results. Around a third of them reported faster gross domestic product growth than the national rate.

Reuters reports that the White House confirmed that the United States will not lift any existing travel restrictions "at this point" due to concerns over the highly transmissible COVID-19 Delta variant and the rising number of U.S. coronavirus cases.

The decision comes after a senior level White House meeting late on Friday. It means that the long-running travel restrictions that have barred much of the world's population from the United States since 2020 will not be lifted in the short term.

"Given where we are today ... with the Delta variant, we will maintain existing travel restrictions at this point," White House spokeswoman Jen Psaki said, citing the spread of the Delta variant in the United States and abroad. "Driven by the Delta variant, cases are rising here at home, particularly among those who are unvaccinated and appear likely continue to increase in the weeks ahead."

The announcement almost certainly dooms any bid by U.S. airlines and the U.S. tourism industry to salvage summer travel by Europeans and others covered by the restrictions. Airlines have heavily lobbied the White House for months to lift the restrictions and some say the industry may now have to wait until September or later for a possible revision.

FXStreet reports that FX Strategists at UOB Group said that cable could now be headed towards the 1.3900 area in the next weeks.

Next 1-3 weeks: “We have expected GBP to trade within a 1.3600/1.3830 range since late last week. That said, we detected an improvement in shorter-term momentum and yesterday (26 Jul, spot at 1.3755), we highlighted that ‘a break of 1.3830 is not ruled out but GBP is unlikely able to maintain a foothold above this level’. We did not anticipate the subsequent strong rise during NY hours to a high of 1.3833. Upward momentum has improved further and GBP is expected to trade with an upward bias towards 1.3900. At this stage, the prospect for a sustained rise above 1.3900 is not high. On the downside, a breach of 1.3740 (‘strong support’ level) would indicate that GBP is not ready to head higher just yet.”

EUR/USD

Resistance levels (open interest**, contracts)

$1.1882 (1605)

$1.1854 (1108)

$1.1836 (106)

Price at time of writing this review: $1.1797

Support levels (open interest**, contracts):

$1.1758 (2260)

$1.1727 (5417)

$1.1688 (10605)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date August, 6 is 64606 contracts (according to data from July, 26) with the maximum number of contracts with strike price $1,1700 (10605);

GBP/USD

$1.3938 (1191)

$1.3881 (1006)

$1.3846 (658)

Price at time of writing this review: $1.3813

Support levels (open interest**, contracts):

$1.3735 (686)

$1.3705 (917)

$1.3670 (518)

Comments:

- Overall open interest on the CALL options with the expiration date August, 6 is 15477 contracts, with the maximum number of contracts with strike price $1,4000 (1718);

- Overall open interest on the PUT options with the expiration date August, 6 is 18180 contracts, with the maximum number of contracts with strike price $1,3400 (1680);

- The ratio of PUT/CALL was 1.17 versus 1.21 from the previous trading day according to data from July, 26

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

Reuters reports that data from the National Bureau of Statistics showed that profit growth at China's industrial firms slowed for the fourth straight month in June, as high raw material prices weighed on factories' margins.

Industrial firms' profits rose 20% year-on-year in June to 791.8 billion yuan ($122.27 billion), after a 36.4% increase in May.

The Chinese economy has largely recovered from disruptions caused by the coronavirus pandemic, but it has faced new challenges in recent months such as higher raw material costs and global supply chain crunches.

In the first half of 2021, industrial firms' profits grew a hefty 66.9% from a pandemic-induced slump in the same period a year earlier. Profits in January-June increased 45.5% from the same period in 2019, before the global pandemic started.

"The profit margin of upstream industrial enterprises improved further while downstream profit margin edged down slightly," said analysts from Goldman Sachs in a note.

China's factory activity slowed in June on a resurgence of COVID-19 cases in the export province of Guangdong, with epidemic prevention and control efforts curbing port processing capacity.

Metals processing, as well as chemicals and pharmaceuticals industries, drove profit growth in June, according to NBS data.