In 2003 the glass and ceramic industry started to grow again after the doldrums experienced in 2002 which interrupted the development trend started in 1997.
Production grew by 1.4% (at constant prices) but failed to offset the substantial losses posted in 2002. Production recovery was supported by more lively domestic demand, whereas foreign trade was negative, in line with the trend affecting the entire manufacturing industry. Although the general scenario was relatively favorable, performance in the various sectors of the industry differed greatly.
Ceramic companies, more exposed to foreign competition, experienced a slight decrease in production, whereas the glass sectors performed well, also after the re-opening of a large flat glass manufacturing site.

The healthy growth of domestic demand (+ 3.8% at constant prices) was boosted by the replenishment of flat glass stocks, which dropped to record lows in 2002 following the shutdown of a major float glass production line.
Real flat glass consumption, instead, remained negative in 2003 as a result of the crisis in the transportation industry that was only partially offset by positive demand in the building industry.
By contrast, domestic demand for hollow glass was on the up thanks to the increased use by the food and drink industries, which increasingly appreciate glass packaging and thus compensated for the stagnant family consumption.
The continuing upward trend in construction investments and particularly in new residential buildings boosted demand for tiles and sanitary wares.

The rise in competitive pressure following the strengthening of the euro and the slowdown in the European building construction markets had a negative impact on exports by both sectors.

Imports took a nosedive which resulted in reduced import penetration that lies well below the average of the manufacturing industry.