Chinese e-commerce giant Alibaba reported its first single-digit gross merchandise volume (GMV) growth for Singles Day since launching the world’s biggest online shopping event in 2009. The record 540.3 billion yuan ($84.5 billion) sales through the first 11 days of November accounted for an 8.5% increase from the previous year, but still fell short of the top-end 15% increase, or 578 billion yuan ($90 billion), forecast by analysts. This year’s figure also pales to the 26% jump Alibaba posted last year, compared to 2019, reports CNN.

Analysts from American multinational investment bank and financial services corporation Citi wrote Friday that the slowdown was not “entirely unexpected.” 

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Alibaba’s smaller rival JD recorded 349.1 billion yuan ($54.6 billion) in sales by GMV, up 28.6% from a year ago, but still below the 33% growth rate it hit last year.

China’s economy has been under strain this year due to energy woes, shipping disruptions and a worsening property crisis.

China‘s Producer Price Index jumped 13.5% in October from a year ago, while Consumer Price Index rose 1.5% in October from a year ago, double the rate of the previous month and the fastest pace of increase since September 2020.

Alibaba (BABA) launched the first Singles Day Shopping Festival on November 11, 2009. Also known as Double 11, the event was celebrated with less than usual pomp this year amid President Xi Jinping‘s “common prosperity” push that aims to curb inequality and excessive consumption. Past galas held usually the night before November 11 have featured celebrities such as Katy Perry and Taylor Swift. “This year’s muted festivities are a perfect storm of economic, competitive and regulatory pressures,” said Michael Norris, research strategy manager at Shanghai-based consultancy Agency China.

“In terms of regulation, e-commerce platforms are coming to grips with how to align consumption extravaganzas with ‘common prosperity’ themes,” he said.

(With AP inputs)