1ST LEAD German industrial sector set to have ended 2016 on solid footing By Andrew McCathie, dpa

Berlin (dpa) - Germany‘s industrial sector appears to have finished last year on a solid footing with data released on Monday showing both output and trade expanding in November.While monthly industrial production increased in November by 0.4 per cent compared with a 0.5-per-cent rise in October, November exports jumped by a stronger-than-forecast 3.9 per cent, the Federal Statistics Office (Destatis) said.Imports also beat analysts‘ forecasts, rising 3.5 per cent in November from a 1.2-per-cent gain in October, Destatis said."Today‘s data finally brings some evidence that the German economy gained momentum in the final quarter of the year," said ING Bank chief German economist Carsten Brzeski.The release of the latest batch of key economic data came ahead of the publication of figures on Thursday, which are forecast to show Europe‘s biggest economy posting its strongest growth in five years in 2016.The German economy is forecast by analysts to have expanded by 1.8 per cent last year compared with 2015 after it grew by 0.5 per cent quarter on quarter in the final three months of 2016 - more than double its third quarter expansion rate.At 4.1 per cent, Germany enjoyed Europe‘s lowest unemployment rate, according to data released on Monday by the European Union‘s statistics office Eurostat.Analysts had expected exports to rise by 0.5 per cent from October when they also rose by 0.5 per cent and imports to pick up by 1.1 per cent.Anton F. Boerner, who heads up the German Federation of Wholesalers, Foreign Trade and Services (BGA), was cautiously optimistic about the performance of the nation‘s export sector. After turbulent year, he said: "The foreign figures for November suggest a strong end-of-year spurt and thus a calm overall balance for 2016." But Boerner warned that 2017 threatened to result in fresh uncertainties including a series of European elections and US trade policy under a White House run by Donald Trump.Still, Boerner said: "(Germany‘s) foreign trade is flexible enough to sail through rough waters."Industrial production came in 2.2-per-cent higher in November compared to the same month in 2015 but fell short of the 0.6-per-cent rise forecast by analysts for the month of November compared with October. Commenting on the output data, the Economic Affairs Ministry said: "In manufacturing and construction, production picked up markedly after a weak summer half."Orders in manufacturing and construction, as well as sentiment indicators in these sectors, point to solid output growth in the winter half," the ministry said.However, data released last week showed German retail sales and industrial orders both slumped more than forecast in November after strong gains in the previous month.While monthly retail sales dropped by 1.8 per cent in November, factory orders were down 2.5 per cent, Destatis said.