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

Asian equities ended the week with a thud as Japan, Taiwan, South Korea, Thailand, and Malaysia fell more than -1% as tariff talk (terror?) curtails animal spirits and Indonesia closed for Hindu Saka New Year. —Brendan Ahern, Forbes.com, 28 Mar. 2025

The iShares National Muni Bond ETF over the past three months Real ‘animal spirits’ Chewy reports in the morning. —Jason Gewirtz, CNBC, 25 Mar. 2025

In the wake of the Ne Zha 2 phenomenon, much of China’s filmmaking community is now asking the same question: Can one monster hit reignite a country’s passion for moviegoing and restore animal spirits to the country’s once-booming film sector? —Patrick Brzeski, The Hollywood Reporter, 16 Mar. 2025

Last month’s discussion of awakening animal spirits and multiple analysts racing to readjust their 2025 S & P 500 targets served as a warning, as the Cboe Volatility Index (VIX) crashed under 15. —Jeff Kilburg, CNBC, 7 Mar. 2025

Word History

First Known Use

15th century, in the meaning defined at sense 1