By Anna Stablum May 12 (Bloomberg) -- Copper rose in London on a weaker dollar and on speculation that swelling economies will prevent metals usage from shrinking even if European governments cut budgets to rein in debts. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell 0.3 percent, erasing a climb. The economy in Germany, the world’s third-biggest copper user, unexpectedly grew in the first quarter, a report showed. “The real economies are picking up, but there is still a degree of nervousness over Europe,” said David Wilson, director of metals research at Societe Generale SA. “If governments across Europe will have to slash spending, maybe that will slow down the pace of recovery. But we definitely don’t think we will see any contraction in metals consumption from here.” Copper for delivery in three months climbed $45, or 0.6 percent, to $7,095 a metric ton at 9:56 a.m. on the London Metal Exchange. The contract erased a drop of as much as 2 percent. Futures for July delivery gained 0.4 percent to $3.22 a pound on the Comex in New York. Nickel for three-month delivery on the LME rose 1.2 percent to $22,850 a ton and aluminum gained 1 percent to $2,125.25 a ton. Lead slipped 0.1 percent to $2,047.50 a ton, zinc advanced 1.7 percent to $2,105 a ton and tin climbed 1 percent to $17,700 a ton. --Editors: Dan Weeks, Claudia Carpenter. To contact the reporter on the story: Anna Stablum in London at astablum@bloomberg.net. To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net.

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