According to a Tuesday statement by the New York Federal Reserve Bank, manufacturing activity in the New York area, in September, bounced back to its highest level since the onslaught of the recession in late 2007.

Marking its seventh successive increase, the bank's Empire State Manufacturing index soared to 18.9 in September, from its August figures of 12.1. The rise surpassed the economists' expectations of a 15 percent increase in the Empire manufacturing index.

Almost 40 percent of manufacturers reported an improvement in the economic conditions, while 20 percent said that the conditions had deteriorated.

Going by the statistics, the new orders index increased to 19.8 in September from 13.4 in August; while the unfilled orders index during the monthly period surged to negative 4.8 from negative 9.6.

Meanwhile, the month-on-month shipment index dropped to 5.3 in September from the earlier month's 14.1; and the inventories index remained at negative 25.0, well below zero.

Commenting on the apparent revival of manufacturing activity, Robert Stein, senior economist at First Trust Advisors in Lisle, Illinois, said: "Manufacturing is coming back and it's not just in the auto sector. For the first time in a long time, at the early stages of an economic recovery it's the old-time industries that are leading. And much of that has to do with the fact we had a huge inventory reduction."