* Thomson Reuters OeKB CEE Business Climate index rises
again
* Business Climate index on rise since mid-2009
* Business expectations index highest since July 2008
By Michael Shields
VIENNA, Feb 8 (Reuters) - The business climate for investors
in emerging Europe rose for the seventh time in a row and
business expectations have hit their highest level since before
the financial crisis erupted, a Thomson Reuters survey showed.
The Thomson Reuters & OeKB Central and Eastern European
Business Climate index <REUTERSOEKB> of foreign direct investors
advanced to 34 in January, from 29 in October, extending a rise
that began in mid-2009. []
The business expectations index climbed five points to 41,
its highest level since July 2008, helped by a sharp upturn in
optimism about Ukraine's economic outlook.
Ukraine was a positive standout for the hundreds of
Austrian-based companies that take part in the quarterly survey,
while the Czech Republic, where the government is pursuing
austerity measures and structural reforms, was the only country
whose reading fell.
The poll's overall upbeat tone reflects the region's
quicker-than-expected emergence from the economic crisis, helped
by Germany's robust performance that is sucking in imports from
central and eastern Europe. []
Economists now expect the region to grow around 4 percent
this year, easily outpacing more sluggish economies in western
Europe at a time of belt-tightening to get a grip on state debt.
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For a link to the survey results, click on
http://r.reuters.com/fyn87r
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"Direct investors see economic conditions (in the region)
improving in the next 12 months, even if they do not expect a
dynamic upturn. Willingness to expand (into new markets) remains
subdued," Austrian export financing bank OeKB said.
Data for the survey were collected Jan. 10 to 21.
While the Czech Republic declined to 40 in the survey, from
a previous reading of 44 in October, Ukraine's reading soared to
32 from 3.
Fifty-nine percent of participants expect economic
conditions in the crisis-shaken country to improve, and not one
foresaw a deterioration.
"No other country had expectations improve as much in
January. Only Russia has a higher net reading, although the
optimism here eased a bit from the October level," it said.
The survey picked up differences within the financial sector
about how things were going in the overall region. Insurers'
satisfaction with the current business situation declined while
banks turned more positive.
On the other hand, insurers' business expectations for the
next six months rose while banks became more cautious.
The business climate for energy and water utilities
continued to worsen as the sector's business expectations fell,
but only 2 percent were considering scaling back or closing
operations in the region.
NOTE - Distributed exclusively on Reuters, the Thomson
Reuters & OeKB Central European Business Climate Index is based
on quarterly surveys of 400 international companies with
regional headquarters in Austria, which manage 1,400 affiliate
companies in 19 countries in central and eastern Europe.
(Editing by Catherine Evans)
