  Using finite-temperature diagonalization we investigate the optical
conductivity $\sigma(\omega)$ and spin-orbital dynamics in the CE phase of
half-doped manganites. We find $\sigma(\omega)$ characterized by a broad
spectrum with pronounced optical gap due to charge ordering induced by Coulomb
and further neighbor Jahn-Teller interactions. With increasing temperature the
conductivity shows a significant change over a wide energy range with a
characteristic shift towards lower frequencies. In the low temperature CE phase
we observe in-gap absorption due to combined orbiton-spin excitations.
