U.S. household wealth rose by $1.2 trillion in the third quarter and household debt contracted at a slower rate than previously, according to Federal Reserve data on Thursday that showed slow repair to household finances in a weak recovery.

Household net worth climbed to $54.9 trillion after falling $1.4 trillion in the second quarter.

Household debt shrank at a 1.7 percent annual rate after contracting by 2.2 percent in the second quarter.