1ST LEAD German output posts modest rebound in October By Andrew McCathie, dpa

Berlin (dpa) - German industrial production posted a modest rebound in October after two consecutive monthly declines, but the increase fell well short of analysts‘ forecasts.Output in Europe‘s biggest economy edged higher by 0.2 per cent in October compared with September, when it contracted by 1.1 per cent, the Economics Ministry said.Analysts had forecast a 0.8-per-cent rebound in October.Still, the ministry saw the data as pointing to a positive end to the year for the German economy. "Industrial production began the fourth quarter on a positive note," the ministry said in a statement. "This is the first step in overcoming several months of weakness." The pickup in October followed solid increases in the manufacturing sector and in the production of capital goods such as machinery and equipment.However, hefty falls in output of the energy sector and so-called immediate goods, which are inputs used in the production process, dragged down the overall figure.On Friday, data released by the ministry showed factory orders also rebounding in October, increasing by a more-than-forecast 1.8 per cent and bringing an end to three consecutive monthly falls.