American households grew a little wealthier in the second quarter ended June 30 for the first time since the second quarter of 2007.

Data collected by the Federal Reserve revealed that American household wealth grew by $2 trillion by the end of June as compared with a quarter earlier.

The total value of assets such as homes, investment and checking accounts soared to $53.1 trillion against a fall of 13 per cent in the previous quarter.

Assets like life insurance, mutual funds and pension funds increased by $1.06 trillion.

Household debt dropped to $13.7 trillion during the second quarter, losing 1.7 per cent at annual rate.

However, net worth is still down 20 per cent than it was when net worth peaked in 2007.

Speaking on the Fed report, economist Mark Vitner said, "Much like everything else we're seeing, this is a little bit better than it's been."

A number of economists are of the view that economic recovery will be lethargic which will limit further gains in the stock and housing markets.