Hurricane Arthur weakens to Category 1 as it lashes East Coast

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All eyes remain on Hurricane Arthur after the storm brought severe flooding and massive power outages to the outer banks of North Carolina.

Hurricane Arthur has weakened to Category 1 storm after reaching Category 2 Thursday. The U.S. National Hurricane Center says Arthur's maximum sustained winds have decreased to 90 mph with additional weakening expected.

Meanwhile, a new tropical storm warning was issued for Nova Scotia in Canada, where Arthur is expected to head as it moves northeast.

Nearly 18,000 customers are without power along the North Carolina coast after Hurricane Arthur arrived last night. So far there are no reports of injuries; just lots of wind and waves.

Arthur roared ashore near Cape Lookout, North Carolina as a Category two storm, bringing horizontal rain and high winds.

More than a dozen counties are under a state of emergency as thousands are left without power, while storm surge and flooding remain a threat.

"Most people who have been concerned have been directly on the coast. Now we have concerns about people inland who may be impacted by potential flooding and rivers going over their banks," said Gov. Pat McCrory.

The governor is urging residents to stay inside until Arthur has passed. The storm sent tourists scrambling from beaches on what would have been a busy July Fourth holiday, while many of the locals took it all in stride.

This is just a little bump in the road when you live here. So, just be smart," one resident said.

"You just have to be prepared and if it gets to a point where you need to go, you need to go," said another resident.

The National Weather Service says Arthur won't stay in North Carolina long. It's expected to speed up, dumping rain all the way up to Maine today.

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