The final Markit German PMI manufacturing index was revised slightly to 54.3 from the flash reading of 54.4 and a retreat from the 33-month high of 55.0 for October.
The data was fractionally below expectations, but well above the 2016 average of 53.0.
There was solid growth in new orders from both the domestic and overseas markets with export orders strengthening for 16th successive month.
Production increased for the month, but at the slowest rate of growth since May with weaker growth in the investment sector.
Although there was a further increase in employment, unfinished business increased for the month, which should support near-term production growth, especially with solid growth in orders.
There was an increase in lead times at the strongest rate for two years, while input prices increased at the fastest pace since March 2012. There was, however, a slight slowdown in the pace of output price increases.
The data overall will maintain underlying confidence in the manufacturing sector with the potential for solid growth over the next few months.
Currency-market moves were limited, but there was further downward pressure on bunds, in line with global selling pressure, as the 10-year yield moved above the 0.30% level.