Following months of public health orders restricting business operations, New Mexico is on track to ease some of the stringent measures the governor put in place to limit the spread of COVID-19.

Gov. Michelle Lujan Grisham announced Wednesday the return of indoor dining at limited capacity and said other restrictions will be lifted under a modified public health order that takes effect Saturday.

The changes come ahead of the Labor Day weekend, traditionally a time of large family gatherings, bustling campgrounds and a boost in tourism.

Asked whether the governor fears easing restrictions before the holiday weekend could lead to a return of surging virus numbers, spokeswoman Nora Meyers Sackett said in an email, “Any holiday weekend where people typically gather in large groups is a concern amid the ongoing pandemic.

“As the governor has said regarding previous holiday weekends,” she continued, “it’s critical that New Mexicans do not gather with others beyond their own household members, especially for Labor Day weekend. Any large gathering provides an opportunity for the virus to spread and worsen New Mexico’s conditions.”

The daily count of new cases jumped to 205 Wednesday, following several days of double-digit numbers statewide.

The governor’s announcement also came as the New Mexico Supreme Court unanimously ruled her administration has the authority to prohibit indoor dining as a public safety measure. The restriction had been challenged by several eateries and the New Mexico Restaurant Association, which had decried it as “arbitrary and capricious.”

Under the revised health order, the Governor’s Office said, restaurants — including breweries, wineries, distilleries, cafes, coffee shops and similar establishments — will be permitted to allow indoor seating at 25 percent of capacity starting Saturday. Houses of worship also will be allowed to hold services at 40 percent capacity, an increase from 25 percent.

The eased restrictions will be in effect through at least mid-September.

The governor and health officials will hold a news conference Thursday to discuss the changes as well as plans for public schools this fall.

Schools across the state are now operating remotely, with students and teachers meeting via online platforms.

Daily virus numbers surged in June and July after the state began reopening business operations. The governor responded by reimposing stricter health orders, and weeks later, the cases started to decline.

The state is meeting all but one of its “gating criteria” — officials’ term for COVID-19-related thresholds that must be met before New Mexico can begin softening restrictions.

“I know New Mexicans are ecstatic about our recent progress against COVID-19,” Lujan Grisham said in a statement Wednesday. “But, given what we know about this virus, we must sound a note of caution: Our progress is only as good as our willingness to stay the course. This virus is still looking for opportunities to spread. We’ve got to adhere to COVID-safe practices in our day-to-day lives to minimize and eliminate those opportunities.”

The virus’s rate of transmission in the state has risen from a recent low of 0.70 to 1.01, but it remains below a target of 1.05 set by health officials. Any number above 1 means the virus is spreading.

Other gating criteria — such as daily case numbers, testing capacity, the rate of positive test results, and the number of intensive care beds and amount of personal protective equipment available at hospitals — are all being met.

The only measure the state isn’t meeting is the amount of time it takes to isolate close contacts of a patient who tests positive for the coronavirus. According to the Department of Health, it now takes 47 hours, but the goal is 36 hours or less.

“We’re meeting 7 out of 8 of our reopening gating criteria,” Department of Health spokesman David Morgan said in an email.

Morgan said it’s “critical” to communicate with people who have had close contact with those who test positive to limit spread of the illness.

“I am so grateful to the New Mexicans who have made sacrifices and changed their behaviors to help get us to this point,” the governor said in a statement.

“Now we must — we absolutely must — sustain it,” she added. “[On Thursday,] we’ll talk more about how far we’ve come and what we’ve still got to do, but I’m happy to announce these changes today and hope that New Mexicans feel that our hard work has begun to pay off.”