State's economic growth slows to 1.6% in quarter

The Massachusetts economy slowed in the second quarter and lagged the national growth rate for the first time since last year's third quarter, the University of Massachusetts reported. The state's economy expanded at a 1.6 percent annual rate from April to June, according to UMass. The national economy grew at a 1.9 percent rate, the Commerce Department reported. Housing and consumer sectors, such as construction and retail, continue to struggle, but technology, science, and healthcare are expanding, UMass analysts said. Still, the state labor market is weakening. Employment grew at less than a half percent annual rate in the period, while the unemployment rate rose to 5.2 percent in June, up from 4.4 percent in March, the end of first quarter. (Robert Gavin)

Baskin-Robbins plans to open its first store in Shanghai as part of a 100-store expansion into China, the Dunkin' Brand Inc. company said. The first Shanghai store is scheduled to open before the end of the year with another 50 stores set to open across the city and in the Jiangsu, Zhejiang, and Shaanxi provinces within the next five years. A total of 100 stores across the eastern and northwestern regions of China will open by 2018, the Canton company said. The stores are part of a franchise agreement with Shaanxi Stellerich Food and Restaurant Co., which was signed at an event in Shanghai yesterday. Baskin-Robbins already has 40 stores in Beijing. (Elizabeth Campbell)

AirTran Airways said it will cut the frequency of flights on at least three Boston routes this fall as it reduces seat capacity nationwide by 7 percent to 8 percent through the end of the year, compared with the same four-month period last year. Starting Sept. 4, it will run five daily flights, down from six, from Logan Airport to Hartsfield-Jackson Atlanta International on Mondays through Thursdays. Flights from Logan to Baltimore Washington International will drop to four on Saturdays and to six on Sundays, both down from nine daily. The two daily flights from Logan to Orlando International Airport will fall to once a day on various days each month. (Nicole C. Wong)

Enterasys Networks Inc., a networking gear company in Andover, will be combined with a pair of firms through a joint venture. In the venture, the Gores Group, a Los Angeles investor in Enterasys, will acquire a majority stake in Siemens Enterprise Communications, a networking unit of the German conglomerate. The deal will enable the partners to combine the Siemens unit with Enterasys, which has 750 employees worldwide, and another Gores company, SER Solutions, a call center software company, to expand their footprint in networking and communications for the business market. (Robert Weisman)

Forrester Research Inc. of Cambridge said it purchased rival Jupiter Research LLC of New York in a $23 million deal that continues the recent wave of consolidation sweeping the technology research sector. The acquisition is expected to strengthen Forrester's marketing and strategy operations to better position the firm against its larger rivals Gartner Inc. of Stamford, Conn., and International Data Corp. of Framingham. Under terms of the deal, Forrester will buy Jupiter and its parent company, JUPR Holdings Inc., from MCG Capital Corp. (Robert Weisman)

Vertex Pharmaceuticals Inc. has taken another step toward moving its Cambridge headquarters to Boston. The biotechnology firm signed a nonbinding letter of intent to lease at least 500,000 square feet of office and laboratory space in Boston's Fan Pier neighborhood on the South Boston Waterfront, the Boston Business Journal reported on its website. The buildings are being developed by Joe Fallon, and the letter of intent could make it easier for him to line up financing for the project. A Fallon spokesman could not be reached for comment. Vertex spokesman Zachry Barber said the company couldn't comment on the letter of intent. (Todd Wallack)

Dynamics Research Corp., an Andover engineering and technology services firm, said it has agreed to acquire management consulting firm Kadix Systems LLC, a contractor to the Marine Corps and Department of Homeland Security, for $42 million. Kadix, based in Arlington, Va., has about 270 employees in the Washington, D.C., area, Aberdeen, Md., and Fort Sam Houston, Texas. (Robert Weisman)