animal spirits

plural noun

1

sometimes animal spirit obsolete : the nervous energy that is the source of physical sensation and movement

2

: vivacity arising from physical health and energy

3

in Keynesian economic theory : emotional feelings and desires (such as an optimistic willingness to take positive action) that influence the economic behavior of consumers and investors

If you ask how much consumers will consume and investors invest over the next few months, the answer is determined largely by feelings—what John Maynard Keynes called "animal spirits." If frightened people decide not to spend, their nervousness can translate into a depressed economy.

—Paul Krugman

Examples of animal spirits in a Sentence

Recent Examples on the Web

Their bull case would see the index reaching 9,000 points if animal spirits take hold in consumer, business and investor confidence, while a bear case envisages the gauge dropping to 5,000 points if inflation stays high and economic growth is subdued. —Bloomberg, Mercury News, 1 Sep. 2025

The presence of these animal spirits was also shown in Paramount Skydance . —Fred Imbert, CNBC, 14 Aug. 2025

Combined with tax incentives and a fiscal boost from the One Big Beautiful Bill Act, corporate animal spirits are poised to pick up this fall as business leaders can now execute hiring and capex decisions that had been put on hold for lack of visibility. —Jeffrey Schulze, Forbes.com, 6 Aug. 2025

The bottom line: The animal spirits are hibernating. —Dan Primack, Axios, 10 Feb. 2025

Word History

First Known Use

15th century, in the meaning defined at sense 1