* U.S. corporate profits up 1.1 percent after Q4 drop

* GM nears Opel deal with restructuring deadline looming

* Japan factory output in biggest monthly gain in 56 years

* German retail sales, UK house prices rise

* Indian GDP grows 5.8 percent (For more on the global crisis, click [nCRISIS])

By Daniel Trotta

NEW YORK, May 29 (Reuters) - Improving vital signs across the globe -- from U.S. GDP to Japanese factory output and British house prices to German retail sales -- raised hope on Friday that the world economy was responding after months in intensive care.

The U.S. economy shrank 5.7 percent from the first quarter of 2008, less than the previous estimate of 6.1 percent and slightly worse than market expectations for a 5.5 percent fall. [ID:nN29399341]

The report confirmed that economic activity declined for three straight quarters for the first time since 1974-1975, but U.S. stocks [.N] rose in part on data showing corporate profits after taxes increased 1.1 percent -- the first increase in a year and a turnaround from a 10.7 percent drop in Q4.