AsianFin -- Chinese search engine giant Baidu (BIDU) reported quarterly revenue that fell slightly short of analysts’ expectations on Wednesday, highlighting ongoing weakness in the advertising sector amid persistent economic uncertainty.

Shares of the U.S.-listed company dipped 1% in premarket trading.

China’s economy has been grappling with a property market downturn, weak employment, and uneven consumer demand, prompting many companies to scale back advertising spending to preserve margins.

Baidu, heavily reliant on search engine advertising, felt the impact. Its core online advertising segment, which typically accounts for around 60% of total revenue, saw a 15% decline to 16.2 billion yuan in the April–June quarter.