March 5, 2008 Economic Outlook CCIM

Wachovia Economics Group 2 Economic Growth While Risks to the Economic Expansion Have Increased Considerably, We Continue To Believe We Will Avoid A Recession Growth will be slower during the first half of the year but Real GDP should remain positive Wachovia

Wachovia Economics Group 3 Employment Growth Preliminary Figures Show Job Growth Fell Slightly In January. Declines Would be Much Larger In An Actual Recession Employment growth has weakened but is nowhere near recession levels Wachovia

Wachovia Economics Group 4 Labor Markets The Unemployment Rate Has Risen But Remains Relatively Low. Past Gains Of This Magnitude Have Coincided With Recessions Or Sharp Slowdowns The unemployment rate remains slightly below “full employment” Wachovia

Wachovia Economics Group 5 Consumer Spending Consumer Spending Is Primarily Driven By Income Growth, Which Remains Solidly Positive. However, The Housing Slump Will Slow Spending Growth Concerns about the wealth effect are overblown Wachovia

Wachovia Economics Group 6 ISM Manufacturing Manufacturing activity is consistent with a slowdown not a recession Wachovia

Wachovia Economics Group 7 Housing The Bulk Of The Declines In Homebuilding Are Behind Us Permits in many of the most challenged markets are approaching zero Wachovia

Wachovia Economics Group 8 Housing We Overbuilt Homes for Five Straight Years & We Will Need to Under-Build For A Few Years Before the Excess Inventory is Corrected Housing will not meaningfully rebound before the end of the decade Wachovia

Wachovia Economics Group 9 OFHEO Home Price Index Over Sixty Percent of the U.S. Population Live in Cities With Positive Home Price Growth OFHEO Source: OFHEO and Wachovia Corp. Wachovia

Wachovia Economics Group 10 Non-Owner Occupied Purchase Loans: 2006 Investors Were Responsible For More than Half of the Purchases in Some Markets in 2006 Investor & Second-Home Mortgages Source: HMDA and Wachovia Corp. Wachovia

Wachovia Economics Group 11 Office Vacancies The office market is essentially in equilibrium Wachovia

Wachovia Economics Group 12 Industrial Vacancies Industrial markets are stronger than the vacancy data suggest Wachovia

Wachovia Economics Group 13 Greensboro Unemployment remains near the national average Wachovia

Wachovia Economics Group 14 Greensboro Home price growth remains steady Wachovia

Wachovia Economics Group 15 Greensboro Population growth has been a great strength of many North Carolina cities Wachovia

Wachovia Economics Group 16 Appendix

Wachovia Economics Group 17  Monthly Outlook  Weekly Economic & Financial Commentary  Special Reports  Economic Indicators  Global Commentary  Regional Commentary  Chief Economist List  To join any of our research distribution lists please us:  Distribution ListsRecent Special Commentary A Sampling of Our Recent Special, Regional & Industry Commentary Economics Group Publications Appendix

Wachovia Economics Group 18 U.S. Macro Economy  Comprehensive Coverage of the U.S. Economy  Monthly Economic Forecast  Weekly Analysis & Outlook  Timely Commentary on Daily Economic Data Releases Global Economies  Macro Level Coverage of Major Foreign Economies  Macro Forecasts of 11 Economies  Monthly Forecasts of 19 Dollar Exchange Rates  Weekly Analysis & Outlook U.S. Regional Economics  Regional and MSA Level Expertise  Extensive Coverage Across the Wachovia Footprint  Ground level Analysis & Commentary of Local Markets Industry  Coverage Across CIB Industry Groups  Regular Commentary on Economic Developments by Industries Economics Group Coverage Real Estate Industrial Growth Consume r & Retail Energy & Power Financial Services MediaHealthcare Tech Economics Group Appendix

Wachovia Economics Group 19 John E. Silvia, Ph.D. Chief Economist    U.S. Macro Economy  Interest Rates  Monetary Policy    U.S. Macro Economy  Real Estate  Regional Economics: State & MSA Level    Global Economies  Foreign Exchange Mark Vitner Senior Economist Jay H. Bryson, Ph.D. Global Economist Sam Bullard Economist    Desk Operations  Financial Services    Quantitative Macro-Economic Modeling    U.S. Macro Economy  Consumer & Retail  Non-residential Real Estate Huiwen Lai, Ph.D. Quantitative Analyst Anika Khan Economist Azhar Iqbal Quantitative Analyst    Quantitative Macro-Economic Modeling    U.S. Macro Economy  Real Estate  Industrial Growth & Services    U.S. Macro Economy Adam G. York Economic Analyst Tim Quinlan Economic Analyst Wachovia Corporation Economics Group publications are distributed by Wachovia Corporation directly and through subsidiaries including, but not limited to, Wachovia Capital Markets, LLC, Wachovia Securities, LLC and Wachovia Securities International Limited. The information and opinions herein are for general information use only. Wachovia does not guarantee their accuracy or completeness, nor does Wachovia assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or as personalized investment advice. © 2008 Wachovia Corp. Economics Group Appendix

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