U.S. manufacturing's rebound is lopsided

American manufacturing is showing signs of revival. But the recovery is being powered by industries at the forefront of the AI and energy boom while the traditional factory sector gets left behind.Why it matters: The White House is touting a revival in American manufacturing as evidence that its economic agenda is working. But a lopsided recovery raises questions about how much of the sector stands to benefit — especially as higher borrowing costs threaten to weigh on factories once again.Zoom in: Factory output rose 0.3% in September despite a 3% drop in auto production — the latest evidence that the long-struggling sector is gaining momentum.The Institute for Supply Management's manufacturing index showed a ninth straight month of expansion, with new orders growing at a faster pace and backlogs of unfinished work mounting.Yes, but: The pickup in the headline manufacturing sector is not translating into hiring across the board. Last month, five of the six largest manufacturing industries reported rising new orders, but only two — computers and electronics, and transportation equipment — reported increased employment, ISM said.The striking split is evident in the hard employment d…

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