While the decline was indeed sharp, a 57.6 is nothing to sneeze at (above 50 denotes expansion) and supports our view that while the economy is clearly not what it was a year ago, it's not nearly threatening recession at this point either.
From the report:
"According to the NMI, 16 non-manufacturing industries reported growth. The non-manufacturing sector’s growth rate cooled off in December. Respondents indicate that there still is concern about tariffs, despite the hold on increases by the U.S. and China. Also, comments reflect that capacity constraints have lessened; however, employment-resource challenges remain. Respondents are mostly optimistic about overall business conditions.”