WASHINGTON Reuters ndash US net worth rose by 362 trillion to 36531 trillion in the second quarter the first increase since before the recession began in 2007 Federal Reserve data showed on Thursday The increase in wealth came in a period that saw the first rise in household real estate assets since the fourth quarter of 2006 and huge gains in global financial markets However even with the 362 trillion rise household net worth was still well below the 36653 trillion peak recorded in the third quarter of 2007 which was shortly before the start of the recession in December 2007 That steep drop in wealth has put a damper on consumer spending which normally accounts for about 70 percent of US economic activity and has encouraged households to boost savings In a sign that savings were on the rise household ownership of US Treasury securities rose to 366059 billion in the second quarterfrom 365764 billion in the prior period The latest figure is up about 65 percent from a year earlier and is the highest since the first quarter of 2006 the Fed said The quarterly Flow of Funds report also showed households and businesses pared debt while the federal government piled more on as it stepped up efforts Household debt contracted at a 134 percent annual rate in the second quarter the fourth consecutive quarter of declines reflecting drops in both mortgage debt and consumer credit such as credit cards business debt also contracted at a 134 percent annual rate the largest quarterly drop since 1993 according to the Fed The decline was in commercial paper loans and commercial mortgage borrowing The federal debt increased at a 2814 percent annual rate in the second quarter The Obama has forecast a record 3616 trillion budget gap for this fiscal year Reporting by EmilyKaiser Editing przez Neil Stempleman