By David Harrison 

The net worth of American households grew in second quarter, but at a slower rate than the prior quarter.

Household net worth grew 1.64% in the second quarter to $113.5 trillion, compared to a 4.99% growth rate in the previous three-month period. However, the first-quarter growth was largely a bounceback after stock-market declines produced a contraction in household wealth in 2018's fourth quarter.

Much of that gain comes from a 3.3% rise in the value of household holdings of corporate equities. Stock markets bounced up and down in April and May as the threat of trade conflicts waxed and waned.

Americans also saw a modest rise in their housing wealth. Equity in real estate owned by households rose 0.4%. The housing market has struggled for more than a year, which has weakened the growth of home prices despite low mortgage rates.

Household retirement assets -- those held in workplace or personal savings plans such as 401(k)s or IRA's -- grew 1.4%.

The figures come from a quarterly report issued by the Federal Reserve known as the Flow of Funds, which tracks the aggregate wealth of all U.S. households and nonprofit organizations. The report offers no details of how that wealth is distributed among households. The figures also not adjusted for inflation.

Americans also ramped up borrowing and saved at a slower rate. Growth in household debt accelerated to a seasonally adjusted annual rate of 4.26% in the second quarter, the strongest pace since the fourth quarter of 2017.

The household saving rate fell to 8.03% of disposable personal income, down from 8.49% in the first quarter.

The pace of borrowing by businesses slowed, however. Business debt grew at a seasonally adjusted annual rate of 4.36% in the second quarter down from 6.72% in the first quarter.

Federal government debt rose 2.08% in the quarter, a slower pace than in the first quarter, while state and local debt fell 2.51%.

Write to David Harrison at david.harrison@wsj.com

(END) Dow Jones Newswires

September 20, 2019 13:32 ET (17:32 GMT)