Howe saw his Newcastle side beaten 5-0 away at the Etihad Stadium on Sunday afternoon as Manchester City moved back to the top of the Premier League table.
Newcastle splashed the cash in the January transfer window in order to survive in the Premier League, but they are set to have bigger expectations next term, something Howe fully understands.
He is clear that Newcastle need to find a way to be competitive in games against the biggest sides in the league.
“We were trying to be aggressive but not cavalier as well. We tried to get that balance right”, Howe told the BBC’s Match of the Day.
“We made individual mistakes and got punished for them.
“We have to find a way in these games to be competitive and get results.
“The expectations are going to be slightly different next season and we have to grow into those demands.”
Since a good series of results put Newcastle well out of relegation danger and up towards the top ten they have lost against Liverpool and Manchester City.
Howe insists that his side are still operating at full throttle.
“I can assure everybody we are not on the beach. We have just played two world-class teams and got beat.”
Newcastle next play host to Arsenal at St James’ Park.
