A method and apparatus for data compression, particularly applicable to spectral signals such as Fast Fourier Transforms of vibration data. The data is merged to remove redundant frequencies when recorded at multiple sample rates, thresholded with respect to a noise floor to remove even more redundant data, and then the positions of non-zero signal values, with respect to the noise floor, are recorded in a first dataword and the non-zero signal values themselves are all recorded concatenated to form a second dataword. The compressed data set consists of the first and second datawords, together with the value of the noise floor, maximum original amplitude and the broadband power. In the event of successive data sets having the same or similar locations for non-zero signal values a re-use flag may be set and the locations dataword discarded. Preferably the signal values are non-linearly quantized to further reduce the amount of data.