Sterling falls broadly; weak UK data clouds outlook

* Sterling falls 0.6 pct vs dollar, euro; weak data weighs

* UK May industrial output unexpectedly falls 0.6 pct m/m

* Sterling not far from 1-mth lows vs euro

* Possible expansion of BoE's QE programme on Thurs weighs

LONDON, July 7 (Reuters) - Sterling fell against the dollar and the euro on Tuesday as weaker-than-expected UK industrial production data further heightened doubts that the economy is poised for a recovery.

The figures showed British manufacturing output fell 0.5 percent during May, while the wider measure of industrial production shrank by 0.6 percent. Both had been forecast to rise by 0.2 percent [ID:nL7532938].

Meanwhile, sterling continues to suffer in the wake of grim U.S. jobs figures last week, which intensified worries about the global economic outlook and prompted investors to shun perceived riskier currencies.

This has weighed heavily on sterling, alongside concerns that the Bank of England could expand its quantitative easing programme when it announces its latest decision on Thursday.