May 30 - Fitch believes the recent decline in consumer confidence could crimp future spending and that revolving credit growth should remain in check despite loosening lending standards. The resulting impact on credit card ABS performance, which is expected to remain strong, will be muted due to extremely strong fundamentals in the sector. On Tuesday, The Conference Board reported that its Consumer Confidence Index is at 64.9, down from 68.7 in April. Whether any potential slowdown in spending as a result of the confidence erosion translates into lower credit card usage remains to be seen, as lenders have begun loosening underwriting standards. The Federal Reserve reported that revolving credit, which includes credit card debt, increased in March by $5.2 billion to $803.6 billion. The increase was attributable to higher gasoline prices and improved retail sales during that period. We see several trends that will contribute to continued positive performance for credit card ABS. In April, every major collateral metric tracked improved. Retail credit card defaults declined to their lowest level in four years, while delinquencies were at their lowest in six years. And Retail credit card ABS followed suit. The reduction in delinquencies bodes well for near-term performance. Delinquent accounts more than 30 days past due declined by 0.5%. Over the short term, stagnant wages and slow improvement in the job markets are expected to present the biggest risks to credit card ABS. The Bureau of Labor and Statistics reported that both the number of unemployed persons (12.5 million) and the unemployment rate (8.1 %) were flat in April. May figures are due out on Friday, and we will monitor their impact on the ABS market. Additional information is available on www.fitchratings.com. The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings.