Weak UK data pushes sterling to 1-mth low vs euro

* Sterling falls sharply, hits 1-month low vs euro

* Weak UK industrial/manufacturing output data dent pound

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

* UK economy shrank by 0.4 pct q/q in Q2 - NIESR

LONDON, July 7 (Reuters) - Sterling fell broadly on Tuesday, hitting a one-month low against the euro after weak UK industrial production data fanned further doubts that the economy is poised for a quick 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, confounding forecasts for a 0.2 percent rise in both measures [ID:nL7532938].

The news dashed hopes that the economy may have rebounded in the second quarter after suffering its steepest fall in 50 years during the first three months of the year.

It also increased concerns that the Bank of England will expand its quantitative easing programme when it announces its latest policy decision on Thursday.