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

The Mainland market is finally showing some animal spirits as 117 stocks hit 52-week highs versus only 4 hitting 52-week lows. —Brendan Ahern, Forbes.com, 25 June 2025

Kolovos said a rollover in gold can help ignite animal spirits in the stock market. —Alex Harring,sean Conlon, CNBC, 25 June 2025

Those animal spirits influence spending and investing decisions, so if the mood gets bad, that could cause a recession. —Greg Rosalsky, NPR, 10 June 2025

Wall Street’s animal spirits are poking their heads out, but not far. —Rohan Goswami, semafor.com, 5 June 2025

Word History

First Known Use

15th century, in the meaning defined at sense 1