<ARTICLE>                     5
<LEGEND>
This schedule contains summary financial  information  extracted from Graco Inc.
and subsidiaries  consolidated  statements of earnings and consolidated  balance
sheets for the  quarterly  period  ending June 27, 1997 and is  qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK>                                     0000042888
<NAME>                                    GRACO INC.
<MULTIPLIER>                                   1,000
<CURRENCY>                              U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                         DEC-27-1997
<PERIOD-START>                            MAR-29-1997
<PERIOD-END>                              JUN-27-1997
<EXCHANGE-RATE>                                     1
<CASH>                                          2,258
<SECURITIES>                                        0
<RECEIVABLES>                                  89,903
<ALLOWANCES>                                    4,224
<INVENTORY>                                    43,405
<CURRENT-ASSETS>                              149,408
<PP&E>                                        191,600
<DEPRECIATION>                                 92,078
<TOTAL-ASSETS>                                258,328
<CURRENT-LIABILITIES>                          81,402
<BONDS>                                        12,321
<PREFERRED-MANDATORY>                               0
<PREFERRED>                                         0
<COMMON>                                       17,064
<OTHER-SE>                                    118,479
<TOTAL-LIABILITY-AND-EQUITY>                  258,328
<SALES>                                       203,820
<TOTAL-REVENUES>                              203,820
<CGS>                                         105,888
<TOTAL-COSTS>                                 105,888
<OTHER-EXPENSES>                               72,583
<LOSS-PROVISION>                                  (69)
<INTEREST-EXPENSE>                                447
<INCOME-PRETAX>                                25,349
<INCOME-TAX>                                    8,750
<INCOME-CONTINUING>                            16,599
<DISCONTINUED>                                      0
<EXTRAORDINARY>                                     0
<CHANGES>                                           0
<NET-INCOME>                                   16,599
<EPS-PRIMARY>                                     .95
<EPS-DILUTED>                                     .95