Business leaders have voiced fears that the day-to-day economic life of Northern Ireland is under threat. They warned that any attempt to suspend the Assembly could jeopardise investment plans already in the pipeline.

Industry leaders have met privately to discuss the current unrest and political instability and the effect it is having on the North's economy.

The Irish Times has learned that a new survey, due to be published next month, will confirm the view that the economy is inextricably linked to the success or failure of the Assembly. It is understood that the Northern Ireland Economic Review & Prospects report, carried out by PricewaterhouseCoopers, will show that an increased number of companies are prepared to review investment plans in the context of political instability.

Senior members of the business community are concerned that sporadic violence seen on the streets of Belfast this week could spread throughout the North and paralyse daily business life.

Mr Bill Jeffrey, vice-chairman of the Federation of Small Businesses, said there was a general fear that the current instability could "close down" commerce in Northern Ireland".

"If there is further trouble, and the feel of most business people is that there will be, it is going to have two main effects. Firstly, it is going to cut off the future lifeblood of Northern Ireland - inward investment - and secondly, it is going to close down day-to-day commerce."

He said business people needed reassurance that this was not going to happen. "The business community has benefited from devolution and we don't want to go back. But we need the Secretary of State, Dr John Reid, to tell us that the Northern Ireland economy is not going to be a pawn in some big power game," he added.

According to Mr John Stringer, of the Northern Ireland Chamber of Commerce, all sectors of industry are greatly concerned about the potential impact of any resignation of the First Minister, Mr David Trimble.

"The Assembly has worked well for us. The business community could do without this political instability and disturbance in communities. This is a difficult time of year for Northern Ireland but these latest developments are bad news for inward investment and tourism particularly," Mr Stringer said.

Business leaders believe the fact that the North is witnessing unrest in anticipation of the annual Drumcree situation is particularly worrying. Mr Nigel Smyth, Northern Ireland director of the Confederation of British Industry, said: "We now have a situation where we have an 11-month year - July is now out of bounds for bringing customers and tourists to Northern Ireland."

According to the chairman of the Institute of Directors in the North, Mr Eric Bell, the consequences of a failure of the political process at this stage would be severe. "Devolution works and we need to keep it. A suspension of the Assembly would send out all the wrong messages," he said.