Goals from Will Hughes and Richarlison condemned the 'Hammers' to defeat, leaving them 17th in the Premier League table and without a win in five games.
Speaking after the game, Pardew explained that West Ham's best player's going forward did not have anough of an impact on the game against the 'Hornets' and that his former side didn't get the stroke of luck that struggling sides need in games.
"Looking at them today, if they'd have got a goal it would have given them confidence, and confidence is a strange thing. It makes you run faster and further, and lifts you as a player. They didn't get that today, a lift of a goal," he explained.
"It was a performance similar to what we've seen from West Ham before, and it's worrying times for them, because they look short at the moment, particularly offensively.
"I don't think they created great chances today, not enough for a West Ham team. Lanzini, Arnautovic, Carroll were quiet today, and these are the type of players who should give the team a lift on match day by getting goals and creating goals."
Next up for West Ham is the visit of Everton on Friday.