Pep Guardiola accepted his Manchester City side lacked bite in the final third as they fell to a 2-0 defeat at home to Liverpool on Sunday.

The hosts actually had more shots (16 to eight) and shots on target (five to four) but first-half goals from Mohamed Salah and Dominik Szoboszlai sent Arne Slot's men 11 points clear of second-place Arsenal.

Indeed, City averaged only 0.03 expected goals per shot, suggesting the chances they created were of a low quality.

Guardiola explained the approach he attempted to employ against the league-leading Reds and conceded they needed to be a touch more clinical when it mattered at the Etihad Stadium.

"We played very good. Maybe we missed more productivity in the shots but we played against a fantastic team. Maybe at the start it was 50-50 and we could not convert," he told Sky Sports.

"In the second half they defended very deep. We have done something we have not tried for many games which was we brought them to their box and tried to beat them there.

"The tactic was to arrive in the final third and the byline and it happened a lot but we did not score. We missed the next bit a little bit and with crosses it is almost impossible to do it because of their size. We could not find the next step."

Guardiola has now lost 10 times against Liverpool, the most he has been beaten by an opponent in his coaching career, though this represented just a second defeat to the Reds at the Etihad in all competitions.

Defeat leaves City in fourth and 20 points adrift of Liverpool, the most they have trailed the league leaders at the end of a day since July 14, 2020, when they last failed to lift the title and the Reds went on to triumph.

Guardiola acknowledged his side are "far away" from where they need to be.

"If you lose, you have to lose the way we lost today. I saw many things that this club has a bright future with the players that we have," he added.

"Except Kevin de Bruyne and maybe Nathan Ake, all the players are so, so young. What the club decides next for the future, there is a bright future for this club in the next years.

"Everyone knows that a part will be here next season for the older players but we have to build for the next step. There is a question of time. Even with the amount of absences we have, we played well.

"We are far away. We will see in the future. What we have done in previous seasons is good but now we are away from them. We played with personality which was really good."