Although the June purchasing managers' index (PMI) survey for the Eurozone gave "grim" signs, Markit insisted that there are "grounds for optimism".

At 52.8, the composite PMI for June was unchanged from the flash estimate but declined from the prior month's reading of 53.5. This marked its lowest reading for the year. However, this was still the 12th consecutive month of expansion for the region.

Of particular note for the region that remains marred with high levels of joblessness, employment in the Eurozone rose moderately for the third month running. Job creation was registered not only in Germany, but also in Italy, Spain and Ireland.

However, France continued to suffer registering yet another decline in employment in what has been an almost constant trend since early 2012.

Markit Chief Economist Chris Williamson admitted that the reading of the June survey was "grim" and would raise worries that the euro area's recovery is already fading. He noted that the output growth slowed for a second successive month to the weakest since December, while growth is fading in Germany and France entered another downturn.

"Dig a little deeper, however, and there are grounds for optimism," Williamson said, pointing out that despite the slowdown in June, the Eurozone is on track to register its best quarter in three years.

This expert expects to see growth double from 0.2% in the first three months of 2014 to 0.4% in the second quarter.

Worth noting, mention of the European Central Bank (ECB) is oddly absent from Williamson's commentary in this report. This economist simply noted that the fall in prices charged for goods and services "was only marginal and the smallest seen for over two years".

The ECB announces its rate decision at 12:45 London time on Thursday and its chief Mario Draghi will hold the traditional press conference at 13:30.

JM

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