* Upbeat U.S. data stokes Western world recovery view
* Copper inventories rise, at highest since last June
* Aluminum hits priciest level since August 2008
* Coming up: U.S. non-manufacturing data on Wednesday (Recasts, adds detail, adds quote, adds double byline and dateline)
By Chris Kelly and Sue Thomas
NEW YORK, May 3 (Reuters) - Copper bounced from a seven-week low to end up on Tuesday, buoyed by surprisingly strong U.S. factory orders data that underscored recovery optimism in Western economies, even as Chinese growth slowed.
Gains fed through across base metals, with aluminum hitting a fresh three-year high above $2,800 per tonne amid concerns about tight physical supplies, strong U.S. April auto sales data.
"I think that economic news is helping copper and base metals," said Justin Lennon, analyst with Mitsui Bussan Commodities in New York.
"It's Western-world focused ... it's aside from China, which is pretty key because they are determined to restrain themselves and use their existing inventories until such time they feel they need to come back."
The metals rally diverged from losses in most other commodity markets on Tuesday, as the weight of a firmer U.S. dollar spurred broad-based liquidation.
The COMEX July copper contract firmed 5.70 cents, or 1.3 percent, to settle at $4.2530 per lb.
London Metal Exchange (LME) copper for three-month delivery ended up $30 at $9,350 a tonne, recovering from an earlier fall to $9,194.75, which was its lowest price since March 17.
Volumes were slow to get going on the first full trading day of the new month. A little more than 37,300 lots were traded in New York, about 20 percent below the 30-day norm, according to preliminary Thomson Reuters data
Both the LME and Shanghai exchange were closed Monday for public holidays.
New orders for U.S. manufactured goods rose 3 percent in April for a fifth straight monthly increase, reflective of a healthy economic recovery and potentially more demand for materials.
"There was a positive reaction," said analyst Andrey Kryuchenkov, "But at the end of the day, everybody is still looking at China, and weaker than expected PMI numbers (showing) manufacturing growth slowing in April outweigh it."
Manufacturing growth in top metal consumer China slowed in April, suggesting that the government's tightening efforts have weighed on the world's second-largest economy more heavily than expected.
HEADY PREMIUMS
Three month aluminum climbed to its highest since August 2008 at $2,803 a tonne, before ending up $30 at $2,797.
Rising energy costs have helped to propel the power intensive metal to its highest levels in almost three years, while a 26-percent jump in April new car and truck sales at Detroit-based General Motors Co added to the lightweight metal's upbeat demand outlook.
Upward pressure in premiums also point to robust demand revival in South America, Barclays Capital said in a note.
"European aluminum premiums have both set new record highs of 8-9/lb and $210-235/t, respectively, with U.S. premiums buoyed by strong South American demand due to weak smelter production growth in the region and rapid growth in demand," it said. (Additional reporting by Melanie Burton in London; editing by Alden Bentley)