Newcastle won 2-1 thanks to a brace from Harvey Barnes.
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Howe said afterwards: "We were close to our very best, really really good performance from the players. We created a lot of chances in that first half, but were disappointed not to go in leading.
"You are always in a position against Manchester City where you make one mistake and you can concede.
"We were brave, ambitious and scored some great goals."
Howe added: "To beat Man City should give us the confidence we need.
"We need to try and use this result as a turning point in our season both home and away to get a result."