U.S. households saw a drop in household wealth and reduced borrowing in the first quarter, Federal Reserve data showed on Thursday. The news of the drop came in the midst of an economic downturn that has eroded confidence and finances. Household net worth dropped to $50.4 trillion from $51.7 trillion. The U.S. central bank's quarterly Flow of Funds report also showed that household borrowing contracted at a 1.1 percent annual rate in the first quarter, after falling at a 2.0 percent pace in the previous period.
