DUBAI  - The United Arab Emirates' non-oil private sector slipped back into contraction in October for the second time in three months, a survey showed on Tuesday, stunting the country's economic recovery from the coronavirus pandemic.

The seasonally adjusted IHS Markit UAE Purchasing Managers' Index (PMI), which covers manufacturing and services, fell to 49.5 in October from 51.0 in September, slipping below the 50.0 mark that separates growth from contraction for the seventh month this year.

The new orders sub-index shrank for the first time since May, falling to 49.3 in October from 52.6 in September.

"While the decline was mild, it nonetheless showed a stalling of growth momentum after the COVID-19 lockdown. Notably, sentiment amongst businesses towards the 12-month outlook was at a joint-record low as firms remained concerned that the pandemic could further hurt activity and spending," said David Owen, economist at survey compiler IHS Markit.

Companies continued to shed jobs for the 10th consecutive month amid concerns that costs would eclipse revenues, though October's fall in employment was softer than the average for the year to date.

Companies cut their work backlogs at the fastest pace since November 2011, with firms signalling that the recovery in output again outstripped that in sales.

Output rose for the fifth consecutive month, though it fell to 51.4 from 53.0 in September. An easing of restrictions and a rise in tourist numbers was partially offset by falling demand and high competition.

"Confidence towards the outlook for output worsened in October, matching August's record low. Panellists often mentioned that further rises in sales should contribute to output growth, but the COVID-19 pandemic continued to weigh on firms' spending plans," the PMI report said.

(Reporting by Yousef Saba; Editing by Hugh Lawson) ((Yousef.Saba@thomsonreuters.com; +971562166204))