<ARTICLE> 5 <LEGEND> (Replace this text with the legend) </LEGEND> <CIK> 0000906609 <NAME> The Morgan Group, Inc. <MULTIPLIER> 1,000 <CURRENCY> U.S. Dollars <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-1-1998 <PERIOD-END> MAR-31-1998 <EXCHANGE-RATE> 1.000 <CASH> 137 <SECURITIES> 0 <RECEIVABLES> 14,864 <ALLOWANCES> 202 <INVENTORY> 0 <CURRENT-ASSETS> 19,444 <PP&E> 6,818 <DEPRECIATION> 2,401 <TOTAL-ASSETS> 34,291 <CURRENT-LIABILITIES> 17,679 <BONDS> 0 <COMMON> 41 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 12,378 <TOTAL-LIABILITY-AND-EQUITY> 34,291 <SALES> 33,971 <TOTAL-REVENUES> 33,971 <CGS> 0 <TOTAL-COSTS> 34,318 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 69 <INTEREST-EXPENSE> 144 <INCOME-PRETAX> (491) <INCOME-TAX> (260) <INCOME-CONTINUING> (231) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (231) <EPS-PRIMARY> (0.08) <EPS-DILUTED> (0.08)