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'Worst is yet to come for nurseries,' accountants warn

The worst of the recession is yet to come for private nurseries, according to a leading accountancy firm.

Speaking to last week's meeting of the Day Nursery Policy Group, PricewaterhouseCoopers directors Andrew McKechnie and Brendan O'Driscoll said, 'Nurseries are still not at the bottom of the recession.'

In previous recessions, they said, it generally took six to eight quarters to reach the bottom, and another six to eight quarters to return to pre-recession levels. Also, they observed, while unemployment has always lagged any upturn in GDP, the peak in insolvencies has as well.

As a result, said Mr McKechnie, 'there will be considerable pain in the medium term and there won't be a pick-up (from peak levels) for another three to five years.'

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