German Industrial Output Makes Timid Gains

German industrial production rose in November, adding to signs that Europe’s largest economy saw a strong finish to the end of last year.

Output, adjusted for seasonal swings, gained 0.4% from October, when it advanced a revised 0.5%, the Economy Ministry in Berlin said on Monday. The reading, which is typically volatile, compares with a median estimate for a 0.6% increase in a Bloomberg survey. A separate report from the Federal Statistics Office showed exports increased 3.9% in November, with imports up 3.5%.

The reports follow a string of data published last week that underlined Germany’s economic strength heading into a year that will bear challenges from national elections in autumn to risks from Britain’s exit negotiations with the European Union. A survey of purchasing managers suggested manufacturing and services expanded at the fastest pace in a year in December, unemployment continued to decline and the inflation rate posted a record increase to 1.7%.

“Germany is doing well—the economy is growing fast enough to bolster employment and slow enough to avoid inflationary tensions,” said Andreas Scheuerle, an economist at Dekabank in Frankfurt. “If it wasn’t for the rest of the world, it would be in an optimal position.”

The euro was little changed after the report and traded at $1.053 in Frankfurt.

Output was bolstered by a 1.5% surge in construction, according to the economy ministry. Manufacturing rose 0.4% in November from the previous month, while energy production fell 0.4%. Production was up 2.2% from a year earlier.