• Brand Finance plc. today releases figures showing the dramatic impact of the economic situation on the value of ‘Brand USA’.
• ‘Brand USA’ is downgraded to AA-, as its brand strength falls to a 10 year low
• The rising value seen in the last two years falters, as the value of ‘Brand USA’ falls 10% since April 2011 to $11.4 tn
With stock markets continuing to slump, new data shows there is a significant decline in ‘Brand USA’s’ value. Nation brand values are produced through a detailed analysis of economic data, perceptual market research data and infrastructure measures producing a combined score out of 100. For ‘Brand USA’ decreases are apparent across all inputs. Infrastructure scores dropped from 77 to 76 points, economic measures fell from 74 to 64 points and the brand equity measure slipped from 71 to 61.
As the world’s biggest economy, ‘Brand USA’ is still significantly more valuable than the next nearest nation. However the drop in brand strength has been caused by inflation, cost of capital, reduced capital, higher unemployment and declining image abroad. If ‘Brand USA’ had been given the AA- rating in the Brand Finance Nations Brand Index (published in May 2011), it would fall below Canada, Australia and South Korea in brand strength.
David Haigh, CEO of Brand Finance plc, comments:
“‘Brand USA’ is under enormous pressure as a decade of crises in business and foreign policy have been joined by serious economic problems. Low consumer spending, a static property market and the sovereign debt credit downgrade have all taken their toll on the value of ‘Brand USA’. At the same time other developed and emerging nation brands are performing better and growing in value. The economic crisis and double dip recession will accelerate these differences, with further shifts likely in the near future.”
Ollie Schmitz, Director of Nation Brand Valuation, Brand Finance plc adds:
“Prior to the recession, ‘Brand USA’ communicated strong and desirable values in everything from popular culture and entertainment to food and retailing brands. However, as a result of the current economic situation the brand strength has now dropped to its lowest score since tracking began in 2000. Once the global benchmark, emerging markets across the globe will now look to other nations to take the lead signalling exceptionally testing times for the ‘Brand USA’ in the future.”
The full Brand Finance plc Nation League Table 2011 and methodology is available upon request from Brand Finance plc.