City have only won five of their opening eight games, dropping points against Norwich in a 3-2 defeat at Carrow Road, drawing 2-2 at home to Spurs and most recently losing 2-0 to Wolves, ensuring Liverpool's lead is a commanding one, even at this early point in the season.
With some already suggesting the title race is over, the German midfielder seemed relatively calm, telling BBC Sport
"That's a fact we can't be happy with and we aren't. But there is nothing else to do but make it better in the next game, which is our target.
"Watching their [Liverpool] games and situation doesn't really help us - we need to fix our situation and drop as few points as possible.
"We have to play better, the 11 on the pitch, and do much better than we did on Sunday."
Since joining from Borussia Dortmund in 2016, Gundogan has become a vital part of City's record breaking team. He played pivotal roles in both the 2017/18 season as well as the 2018/19 term, when the Citizens retained the title by a point ahead of a Liverpool team who only lost one game all season.
The absences of Aymeric Laporte and Kevin De Bruyne have hit City hard, with their defensive frailties being exposed on the counter attack on numerous occasions this season. The defeat to Wolves could be a wake up call for the reigning champions, but as it stands, Liverpool are in pole position for their first title in 29 years.
Source : 90min