Sir Alex Ferguson was left to lament Manchester United's inability in front of goal as Manchester City claimed a derby day victory.
United enjoyed the majority of the match but were hit by a goal against the run of play, from Geovanni, to give Sven Goran Eriksson's side all three points.
The champions were without the likes of Cristiano Ronaldo and Wayne Rooney and Ferguson accepts their finishing was not good enough.
"We had an awful lot of chances and played some fantastic football at times but it just wasn't our day," he told Sky Sports.
"The opportunities we've had and possession, particularly in the last third of the field, and we were just wasteful, that's the nuts and bolts of it.
"I don't think you can even say City were lucky because we had so many opportunities to win it ourselves, so it is our own fault, we haven't won it because of our own disappointments in the last third of the field.
"I'm disappointed with the result, there's no question about that, but I can't fault the performance it was outstanding, we completely dominated the football match."
United have made their worst start to a season since 1992, picking up just two points from their opening three games.
The Red Devils will now look to next Saturday's home game against Tottenham to register the first win of the new season.
"We've given ourselves an uphill fight," Ferguson said.
"Ten years ago we could handle that because we were always good in the second half (of the season), we're going to have to be.
"I think most important is for us to get a win under our belts, the next home match against Tottenham is important to us."