The findings, set to be published in Laing & Buisson's annual survey later this month, show attendance at nurseries dropped as a result of the economic climate but began to pick up at the end of last year.
Speaking at the 2010 Annual Children's Nurseries conference this week, report author and economist at Laing & Buisson Philip Blackburn predicted that "occupancy is set for gradual improvement over the next five years".
Issues about funding were also raised in the report, with 60 per cent of respondents saying that funding for delivering free childcare for three- and four-year-olds still does not cover costs, a two per cent drop compared to last year.
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