The net worth of US households grew by $2,000bn in the second quarter, marking a welcome reversal after nearly two years of recession stripping Americans of their wealth at a record pace.

Household net worth rose by 3.9 per cent last quarter to $53,000bn, fuelled by a stock market rally and a rebound in the value of real estate, the Federal Reserve said on Thursday. During the previous six quarters, household wealth had plunged by $14,200bn.

“We’re on the road, but it’s a big hole to dig out of,” said Brian Bethune, an economist at IHS Global Insight.

Americans continued to shed debt in the second quarter, erasing mortgage liabilities at an annual rate of 1.5 per cent and household debt by 1.75 per cent, while lifting savings to an 11-year high of 5 per cent.

Although the elevated level of savings has improved household wealth, it is a symptom of bigger problems. Mr Bethune noted that greater savings are the result of weak economic conditions and uncertainty about the future but that ultimately consumers will have to rekindle their spending for the economy to grow.

Meanwhile, Federal debt continued to soar, rising by 28.25 per cent as the US government pushed ahead with stimulus measures to support the economy, which had contracted at an annual rate of 1 per cent.