Retail sales dropped 1.2% last month on a seasonally adjusted basis, the Census Bureau reported today. That’s the biggest monthly decline since last September’s 2.2% fall and the first retreat since December’s mild 0.2% loss. The latest drop in retail expenditures, coming at a time of rising deflationary worries, suggests that the worst fears about the economic recovery are confirmed. But while it’s too soon to dismiss such concerns, today’s retail sales update for May isn’t the smoking gun it appears to be.