Howe’s men arrived in the capital on a fine run of form and facing a Chelsea side beset by off the pitch distractions over the future ownership of the club and limits on spending.
The game looked to be heading towards a goalless draw at Stamford Bridge until the 88th minute, when Chelsea attacker Kai Havertz controlled the ball well and hit a shot which beat Martin Dubravka.
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The goal was enough for Chelsea to take all three points and Newcastle remain on 31 points, nine above the drop zone.
Howe believes that Newcastle put in a solid defensive display and were punished when they dropped too deep in the second half.
“Overall it was a very good defensive performance, very strong tactically”, he said post match on Sky Sports.
“Players were resilient to not give away too many chances and I can’t speak highly enough about our defensive display.
“Our pressing was good in the first half.
“We faded a bit in the second half, which is understandable, with the players we have out. We got too deep and they punished us.”
Despite Newcastle’s much-improved form, boosted by January transfer window arrivals, combined with a nine-point gap over the bottom three, Howe still believes his side are in the relegation battle.
“We are still in a relegation battle.
“Under no illusion we have to respond and we are looking forward to some big games ahead.”
Next up for Newcastle is a trip to strugglers Everton, following by a visit back to the capital to face Tottenham Hotspur.