(Reuters) -EBay ( EBAY ) forecast third-quarter revenue below Wall Street estimates on Wednesday, a sign that demand is slowing down for collectible items, luxury handbags and watches.

Consumers' wallets have been pinched by higher borrowing costs, forcing them to reconsider discretionary purchases like collector's items and luxury goods.

An improving economic outlook for the year, including at least one interest rate cut and stronger consumer confidence, is expected to boost total value of goods sold on the platform.

The e-commerce platform expects revenue for the quarter between $2.5 billion and $2.56 billion, compared to analysts' estimate of $2.54 billion, according to LSEG data.

EBay ( EBAY ) posted a profit of $224 million in the second quarter, compared with $171 million, a year earlier.

The revenue for the April-June period stood at $2.57 billion compared with estimates of $2.53 billion.