U.S. household networth falls to $50.4 trillion

WASHINGTON (Reuters) - U.S. households saw a drop in household wealth and reduced borrowing in the first quarter as the economic downturn eroded confidence and finances, Federal Reserve data showed on Thursday.

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.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)