LONDON (Reuters) - Manchester City manager Pep Guardiola said his side were nervous during their surprise 2-0 home defeat by Wolverhampton Wanderers on Sunday to extend their lead to eight points after eight games.

Wolverhampton had three early chances to punish City in the absence of accurate passage and fragile defense.

"It's a bad day and sometimes it happens," said the "philosopher coach" who blamed the lack of focus on the pass rather than the change of heart in his defense.

"We started the game well and then we had two situations during the construction of the attack, which was impossible to defend them and this made us nervous.

"Before that we shot in the net but the way we played was not good. Today was not good and we didn't play well."

The former Barcelona coach, who led City to the Premier League title last two seasons, said his confidence in his team had not been shaken despite the second loss in four games.

"I know these players very well and they can still move forward. Today was bad and the game is bad with all the appreciation of the opponent. We were not at our level and the previous game was better.

"It is time for compensation. The results will determine the situation, but we are in October and there is a long way to go," he said.

German midfielder Ilkay Gundogan admitted his side were sub-standard. "We are frustrated, sad and disappointed. We must accept that what happened today is not customary for us," he said.

"It is painful to be exposed to this now, especially before the two-week international suspension, but we have to improve the next period.