By Glenn Somerville

WASHINGTON (Reuters) - Banks in the United States kept tightening lending standards and terms for both business and consumer loans over the past three months out of concern about a weakening economic outlook, according to a Federal Reserve survey issued on Monday.

The April survey of senior loan officers at 56 domestic banks and 21 U.S. branches and agencies of foreign banks also underlined that demand for loans from businesses and consumers was weaker -- though not as markedly as in January.

"Substantial majorities of domestic and foreign respondents pointed to a less favorable or more uncertain economic outlook and to a worsening of industry-specific problems as reasons for tightening their lending standards on C&I (commercial and industrial) loans over the past three months," the Fed said.

Harm Bandholz, an economist with UniCredit Markets, said the Fed findings implied that a broad-based credit crisis "has spilled over to the real economy and will continue to weigh on investment and consumer spending for some time."

That will be accentuated by declining job opportunities, Bandholz suggested. Jobs have been lost in each of the first four months of 2008, according to government statistics.

Fed policy-makers may have had the outlines of the loan officers' report when they decided last week to reduce official interest rates another quarter percentage point. At the time, the Fed hinted it might halt its rate-cutting campaign while it assesses whether the 3.25 percentage points by which it has lowered benchmark U.S. rates since September will spur growth.

The loan survey shows the tight lending continues to be a problem for the U.S. economy, which has grown at only a 0.6 percent rate during each of the last two quarters due to the drag from a deep housing crisis.

"About 35 percent of domestic banks and 45 percent of foreign institutions -- somewhat larger fractions than in the January survey -- noted that concerns about their banks' current or expected capital position had contributed to more stringent lending policies over the last three months," the Fed said.