WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

  

<ARTICLE>                     5
<LEGEND>
       THIS SCHEDULE CONTAINS SUMMARY FINANCIAL  INFORMATION  EXTRACTED FROM THE
REGISTRANT'S  UNAUDITED  CONSOLIDATED  FINANCIAL STATEMENTS FOR THE THREE MONTHS
ENDED MARCH 31, 1997 AND IS  QUALIFIED  IN ITS  ENTIRETY  BY  REFERENCE  TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<NAME>                              The Morgan Group, Inc.
<MULTIPLIER>                                         1,000
<CURRENCY>                                    U.S. Dollars
       
                            
<PERIOD-TYPE>                  3-MOS
<FISCAL-YEAR-END>                              Dec-31-1997
<PERIOD-START>                                  Jan-1-1997
<PERIOD-END>                                   Mar-31-1997
<EXCHANGE-RATE>                                      1.000
<CASH>                                                 166
<SECURITIES>                                           966
<RECEIVABLES>                                       14,795
<ALLOWANCES>                                            48
<INVENTORY>                                              0
<CURRENT-ASSETS>                                    19,696
<PP&E>                                               5,778
<DEPRECIATION>                                       3,003
<TOTAL-ASSETS>                                      35,861
<CURRENT-LIABILITIES>                               17,382
<BONDS>                                                  0
<PREFERRED-MANDATORY>                                    0
<PREFERRED>                                              0
<COMMON>                                                41
<OTHER-SE>                                          13,290
<TOTAL-LIABILITY-AND-EQUITY>                        35,861
<SALES>                                             33,633
<TOTAL-REVENUES>                                    33,633
<CGS>                                               30,675
<TOTAL-COSTS>                                       33,202
<OTHER-EXPENSES>                                         0
<LOSS-PROVISION>                                         0
<INTEREST-EXPENSE>                                     131
<INCOME-PRETAX>                                        306
<INCOME-TAX>                                            34
<INCOME-CONTINUING>                                    266
<DISCONTINUED>                                           0
<EXTRAORDINARY>                                          0
<CHANGES>                                                0
<NET-INCOME>                                           266
<EPS-PRIMARY>                                          .10
<EPS-DILUTED>                                          .10