Egypt's non-oil private sector output contracted in February for the ​first time ⁠in four months, as demand softened and cost ‌pressures intensified, S&P Global reported on Wednesday.

The headline Purchasing Managers' ​Index (PMI) fell to 48.9 in February from 49.8 in January, ​remaining below ​the 50.0 threshold that separates growth from contraction. Despite the decline, the PMI was above ⁠its long-run average of 48.3.

Output declined for the first time since October, and all five sub-components of the PMI indicated a weakening in ​business conditions compared ‌to January.

"The ⁠February PMI ⁠data pointed to a slowdown in the Egyptian non-oil private ​sector as activity curtailed and ‌new order volumes weakened," said ⁠David Owen, Senior Economist at S&P Global Market Intelligence.

New orders saw a modest contraction, with downturns in manufacturing, wholesale & retail, and services, while construction experienced an increase in new work. Employment fell for the third consecutive month, albeit at a slower pace, as firms implemented hiring freezes and ‌job cuts.

Cost pressures accelerated, driven by rising ⁠global commodity prices, notably oil and ​metals, leading to the sharpest increase in business costs in nine months. Despite this, selling prices remained ​largely unchanged, ‌with only a small fraction of ⁠firms passing on the ​higher costs to customers. (Editing by Toby Chopra)