ENGINEERING firm Mouchel said a spending crackdown by public sector clients after the general election had put the squeeze on the business.
The firm, which works with local councils and organisations such as the Highways Agency, said the impact had been felt in areas such as highways schemes and school building programmes.
Shares in Mouchel fell by 10% at one stage yesterday as the firm predicted a “difficult” short-term outlook and launched its own cost-cutting drive. They closed down 4% or 5.75p at 151.25p.
Orders stood at £1.9bn in May against £2bn in February.