That was the decline in US retail sales in May versus April, according to seasonally-adjusted data from the Commerce Department this week. The drop in retail sales is another sign that the US economy is losing momentum as the Federal Reserve takes action to raise interest rates in face of soaring inflation. A sharp decline in vehicle sales, due to still high prices, low inventory and rising interest rates for car loans, was an important factor in the decline. Consumers also reduced spending on goods such as furniture, electronics and online purchases, the Commerce Department data says, confirming reports from retailers such as Walmart and Target. But even stripping out auto sales and gasoline, retail sales rose just 0.1% in May, well behind the pace at which prices increased last month. As a result of this new data, JPMorgan Chase reduced its forecast for US gross domestic product growth to an annual rate of 2.5% in Q2 from 3.25% previously. Data firm IHS Markit cut its growth estimate more severely, to just 0.9%. SCDigest believes there is a good chance we will see a second straight quarter of negative growth.