Local consumer spending has been a clear casualty of the US-Iran war, as well as the resulting surge in fuel prices.Stats NZ numbers showed the volume of retail sales, which is inflation adjusted, fell 0.5 percent to $25.9 billion in the three months ended June on the previous quarter.It was the first drop in retail spending in nearly two years, but sales were more than 3 percent higher than the same period last year.Economic indicators spokesperson Michelle Feyen said higher prices drove a sharp increase in the actual amount spent on fuel.Previous Stats NZ numbers showed petrol rising 20 percent in price and diesel by nearly 48 percent in the quarter."However, once the effect of price changes is removed, fuel retailing recorded the largest fall in sales volumes of the industries measured."Overall, eight of 15 spending groups fell during the quarter with the biggest being a 13 percent slump in fuel purchases, along with falls also for vehicles, food and beverage services, accommodation, and recreational goods.The biggest quarterly increase in sales volumes was in electronics and electrical goods, which rose more than 9 percent, with smaller rises for pharmaceutical products and online spending.The actual value of quarterly spending was strongest in the South Island, which grew 1.5 percent - almost twice the rise for the North Island.Recent surveys have shown consumer spending improving in recent months but with pessimists just outnumbering the optimists, and still not inclined to buy big ticket items.