I cannot see any diseased areas. Is it on the right in the shadow? Also without a closeup of needles on a branch I cannot say whether or not it might be a needle disease. Blue spruce are not really adapted to our climate so we do not recommend them. Problems include needle cast diseases, browning due to winter winds and sunscald and dropping inner needles for lack of sunlight. Another AAMG expert explains normal needle loss this way. “ CO blue spruce needles do have a finite life - 8 to 10 years, then they drop. SO every year you can expect to see about 1/10 - 1/8 of the innermost/oldest needles turn yellowish, then brown and drop. With age, spruces become a "shell" - a support structure for needles out on the ends of branches only. For example - examining lower branches of a 40 yr-old spruce - there are about 30 years worth of growth now completely bare/devoid of needles and only 8-10 years of needles at branch extremities. Spruces may prematurely drop needles that are only a couple yrs old if they are or become excessively shaded - from branches above, from a building or from adjacent vegetation. Often, these needles turn half-yellow or whitish and half blue before turning entirely brown - this is because those excessively shaded needles are not manufacturing the green pigment chlorophyll any more (blue needle color is due to chlorophyll plus a layer of wax on the needles that helps keeps them from drying). Check a few of the buds at ends of branches to ensure they are present - they'll look a little like a small brown rose bud. These are the promise of new growth/new needles next May. Be sure to water the spruce's entire rooting area until the ground freezes.. You can prune out any deadwood ( twigs/branches devoid of needles ) - at any time when temperatures are above 0." See the following web sites for more detailed information about diseases.1.https://www.extension.umn.edu/garden/yard-garden/trees-shrubs/spruce-tree-diseases/ 2.https://www.ag.ndsu.edu/cpr/forestry/needle-cast-diseases-of-spruce-diagnosis-and-treatment 3.http://www.missouribotanicalgarden.org/gardens-gardening/your-garden/help-for-the-home-gardener/advice-tips-resources/gardening-help-faqs/questionid/172/afmid/4462.aspx