It could be over watering or shedding. However, it is most likely a fungal disease. Spruces are very susceptible to it around this time. The new growth is very susceptible to it as well. Pretty soon, if it is fungal, the new growth is going to start dying as well. I would spray this tree with fungicide immediately. Like tonight or tomorrow morning. Sometimes people spray right before the buds break and then after they extend just to prevent soemthing like this from happening. I cannot stress enough the importance of spraying this as soon as possible.
Rob