We are not yet in a recession. This is only deemed to have occurred ifthe country experiences two consecutive quarters of negative economicgrowth. Nevertheless, we are clearly in the middle of an economicdownturn - driven by the 'credit crunch' and the rising price ofcommodities such as food, gas and oil.
So how is the economic climate likely to affect nursery operators?
DEMAND
The initial concern is likely to be that demand for childcare placeswill fall. As a nursery operator, you may have already seen this happenwhen parents who don't work but still send their children to a nurseryfor one or two sessions a week have decided that nursery care is an itemof household expenditure that is non-essential. If the gloomy economicclimate continues, demand could fall as parents look to reduceexpenditure further.
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