DUBAI - Growth in the United Arab Emirates non-oil private sector slowed to an eight-year low in August, with business activity and demand weakening for a third consecutive month, a survey showed on Tuesday.

The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, fell to 51.6 in August from 55.1 in July.

The non-oil sector remained in growth territory - figures above 50 indicate expansion and below that, contraction – but it was the UAE's weakest growth rate since August 2011.

Weaker demand curbed growth in the country's non-oil economy, with the output growth rate at its weakest in just over six years.

"The dip in activity growth dampened business sentiment in August, although the underlying forecast was still strong," said David Owen, economist at IHS Markit and author of the report.

Extended oil production cuts are lowering expectations for growth in Gulf economies.

The UAE, which has the most diversified economy in the region, cut its expectations for economic growth in 2019 to 2% this year from 3.5% earlier, the central bank said in May. 

Employment contracted marginally in August, with the related index slipping to 49.9 from 50.5 a month earlier, with companies surveyed saying that cost-cutting measures limited hiring activity over the month.

Employment had been growing – though at a weak rate – since March.

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(Reporting by Davide Barbuscia; Editing by Hugh Lawson) ((davide.barbuscia@thomsonreuters.com))