The children's services inspectorate said the share of daycare services and childminders rated as inadequate has risen since it published its How are we doing? report on childcare quality in 2006/07.
But the number of services rated as good or outstanding by inspectors between April and December 2007 also increased.
Michael Hart, director for children at Ofsted, said: "We're concerned that the figures in the past nine months seem to be higher in terms of inadequate provision. Each month we have been judging 80 childminders and 60 daycare settings as being inadequate. These numbers are too high and we want to think about how we can reduce that level of inadequate provision."
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