An increasingly hostile borrowing climate, plus eroding consumer and business confidence, appears to be exerting drags on the Charlotte economy. A moderating pattern of job-growth is reflected in the gradual slowing of employment from its recent high of +3.3% year over year in February 2007 to +2.1% in December 2007. While the fundamental drivers of the Charlotte economy remain solid, the metro area’s near-term outlook is threatened by its significant exposure to the troubled financial services sector.