New Jersey Gov. Phil Murphy said Wednesday he will sign an executive order raising capacity limits on indoor dining and at houses of worship and entertainment venues.

Restaurants will be able to expand indoor dining from 25% capacity to 35% beginning Friday, under the new order. Casinos, gyms and personal-care businesses like salons can also bump up their capacity to 35%. Indoor venues used for religious gatherings, wedding ceremonies and live performances can also increase capacity to 35% with a maximum of 150 people.

“I feel confident in signing this order because of the recent trends in our hospitals and our rate of transmission,” Mr. Murphy, a Democrat, said at a news conference. “We believe we can make this expansion without further stress on our health-care system.”

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