Mouchel under pressure amid spending squeeze

ENGINEERING and outsourcing firm Mouchel today said a spending crackdown by public sector clients after the general election had put the squeeze on the business.

The company, which works with a host of local councils and organisations such as the Highways Agency, said the impact had been felt in "more discretionary" areas such as highways schemes and school building programmes.

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Shares in Mouchel fell as much as 10 per cent at one stage as the firm predicted a "difficult" short-term outlook and launched its own cost-cutting drive.

The company, which had 11,100 staff as of July last year, refused to comment on how many jobs were under threat.