Cameron Braces for U.K. Confidence Shock on Recession Return

Prime Minister David Cameron’s government is bracing itself as the first U.K. recession since he took office threatens to deliver a shock to confidence.

As the premier persists with the fiscal squeeze that has defined his administration, he now faces twin dangers from political fallout and economic damage. While Cameron insists his austerity program has kept U.K. government bond yields low and aided the economy, he said yesterday that a 0.2 percent first-quarter contraction was “very disappointing.”