<ARTICLE>                     5
<LEGEND>
     THIS SCHEDULE  CONTAINS SUMMARY  FINANCIAL  INFORMATION  EXTRACTED FROM THE
REGISTRANT'S  UNAUDITED  CONSOLIDATED  FINANCIAL  STATEMENTS FOR THE NINE MONTHS
ENDED  SEPTEMBER  30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                        0000906609 
<NAME>                       THE MORGAN GROUP
<MULTIPLIER>                 1,000
<CURRENCY>                   U.S. DOLLARS
                            
                         
<PERIOD-TYPE>                3-MOS
<FISCAL-YEAR-END>            DEC-31-1996
<PERIOD-START>               JUN-30-1996
<PERIOD-END>                 SEP-30-1996             
<EXCHANGE-RATE>                   1.000      
<CASH>                            2,217   
<SECURITIES>                        909   
<RECEIVABLES>                    13,541   
<ALLOWANCES>                         44   
<INVENTORY>                           0   
<CURRENT-ASSETS>                 20,069   
<PP&E>                           11,720    
<DEPRECIATION>                    5,145   
<TOTAL-ASSETS>                   32,252 
<CURRENT-LIABILITIES>            13,762 
<BONDS>                               0 
<COMMON>                             41 
<PREFERRED-MANDATORY>                 0 
<PREFERRED>                           0  
<OTHER-SE>                       16,124 
<TOTAL-LIABILITY-AND-EQUITY>     32,252 
<SALES>                          35,305 
<TOTAL-REVENUES>                 35,305 
<CGS>                            32,063 
<TOTAL-COSTS>                    34,517 
<OTHER-EXPENSES>                      0 
<LOSS-PROVISION>                      0 
<INTEREST-EXPENSE>                  108 
<INCOME-PRETAX>                     680 
<INCOME-TAX>                        185 
<INCOME-CONTINUING>                 495 
<DISCONTINUED>                        0 
<EXTRAORDINARY>                       0 
<CHANGES>                             0 
<NET-INCOME>                        495 
<EPS-PRIMARY>                      $.18 
<EPS-DILUTED>                      $.18