Confidence among Oxfordshire businesses has dipped thanks to worries over domestic demand.

A new report has revealed firms are concerned about their prospects for the months ahead and there are still fears of a “double dip” recession among county business leaders.

The Lloyds TSB Business in Britain Confidence Index shows firms in the county plan to freeze investment and raise prices in the face of continuing economic uncertainty.

But on a positive note, exports are faring well with 43 per cent of firms expected to continue exporting at current levels, while just five per cent predict a fall.

As for jobs, the vast majority expect staffing numbers to remain the same, with ten per cent expecting a fall and 13 per cent expect staff numbers to rise over the next six months.

And in terms of investment, while half plan to keep spending at current levels, 22 per cent plan to cut back.

John Robson, regional director for Lloyds TSB Commercial, said: “There is a real danger that without continuing investment and innovation, the competitiveness of businesses could be undermined — and the worries firms harbour about weaker growth could become a self-fulfilling prophecy.”

Ian Wenman, chairman of the Oxfordshire branch of the Institute of Directors, said: “What with worries over interest rates, quantitive easing and inflation, it’s no surprise businesses are finding it difficult to plan, which in turn is bound to affect their confidence.

“The big issue for me and many businesses is, will we have a double dip recession?

“This is a period when we will have to hold our breath and wait and see.”