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 12 MONTHS ENDED
DECEMBER  31,  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>                   12-MOS
<FISCAL-YEAR-END>                              DEC-31-1996
<PERIOD-START>                                 JAN-01-1996
<PERIOD-END>                                   DEC-31-1996
<EXCHANGE-RATE>                                1.000
<CASH>                                         354
<SECURITIES>                                   954
<RECEIVABLES>                                  11,312
<ALLOWANCES>                                   59
<INVENTORY>                                    0
<CURRENT-ASSETS>                               16,923
<PP&E>                                         5,626
<DEPRECIATION>                                 2,863
<TOTAL-ASSETS>                                 33,066
<CURRENT-LIABILITIES>                          14,828
<BONDS>                                        0
<COMMON>                                       41
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<OTHER-SE>                                     13,104
<TOTAL-LIABILITY-AND-EQUITY>                   33,066
<SALES>                                        132,208
<TOTAL-REVENUES>                               132,208
<CGS>                                          122,238
<TOTAL-COSTS>                                  135,471
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             352
<INCOME-PRETAX>                                (3,615)
<INCOME-TAX>                                   (1,545)
<INCOME-CONTINUING>                            (2,070)
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   (2,070)
<EPS-PRIMARY-CLASS-A>                          (.76)        
<EPS-DILUTED-CLASS-A>                          (.76)        
<EPS-PRIMARY-CLASS-B>                          (.80)       
<EPS-DILUTED-CLASS-B>                          (.80)