Aug 15 Reuters Alibaba Group Holding missed market expectations for firstquarter revenue on Thursday, as the company39;s domestic ecommerce sales came under pressure from cautious spending by Chinese consumers in a faltering economy.

A halting economic recovery in China coupled with a persistently weak property market and high job insecurity levels have sapped consumer confidence and spending power in the world39;s No. 2 economy, hitting global firms across the board.

Alibaba is also grappling with stiff competition from rivals including JD.com and discountfocused retail platforms such as PDD Holdings39; Pinduoduo and ByteDanceowned Douyin.

Alibaba reported revenue of 243.24 billion yuan 33.98 billion for the quarter ended June 30, compared with analysts39; average estimate of 249.05 billion yuan, according to LSEG data.

Revenue at the firm39;s domestic ecommerce arm fell 1 even as the number of purchasers and their purchase frequency increased order growth by double digits.

Chinese ecommerce giants have had to resort to heavy discounting and promotions to attract shoppers, pressuring margins across the retail sector.

The spending slump in China is real. Consumers are spending less, downgrading purchases and becoming more rational, said M Science analyst Vinci Zhang. So going into the second half of the year, Alibaba and JD.com will likely continue to face challenges.

Sales at China39;s blowout midyear ecommerce sales festival in June fell for the first time ever…