The result leaves City four points adrift of Premier League leaders Liverpool, who now have a game in hand.
City were ahead after 24 seconds – the quickest goal in the Premier League this season - when Sergio Aguero pounced on David Silva’s header back across goal to finish from close range on the volley, the latest example of his instincts inside the area.
It was the Argentine’s 15th goal in 13 Premier League appearances against Newcastle and his 17th of the season so far.
24 - Sergio Aguero's goal after 24 seconds was the fastest Manchester City have scored in a Premier League game since Jesus Navas scored after 13 seconds against Tottenham Hotspur in November 2013. Rapid. pic.twitter.com/bbMqk4cwAW— OptaJoe (@OptaJoe) January 29, 2019
City's start suggested we were in the mood to extend our 22-game unbeaten run against Newcastle, but much of our play thereafter was disjointed and insipid.
Aguero had the ball in the net again after 17 minutes, flicking home brilliantly from Kevin De Bruyne’s inch-perfect free-kick – but it was ruled out by the referee, Paul Tierney, because the Belgian had taken it before the whistle had been blown.
Silva should have doubled City’s lead just before half-time, but his header was cleared off the line by Florian Lejeune, and Sterling was inches away from converting Leroy Sane’s cross moments after the break.
And with City still struggling to produce fluent, free-flowing football, Newcastle were becoming more expressive, and on 66 minutes Salomon Rondon levelled, hooking the ball past Ederson after City failed to deal with a looping ball into the box.
And 15 minutes later, disaster struck. Fernandinho, unaware of Sean Longstaff behind him, turned into trouble and brought down the 21-year-old. Tierney immediately awarded a penalty, and Matt Ritchie made no mistake from the spot.
"It was not our best night. We didn’t make a good performance.
"We start with a goal but the rhythm of the game was slow. We lose second balls, we are not aggressive enough., that’s why we could not win.
"We had a chance today to reduce the gap knowing tomorrow our opponent play.
"We have to try and win games. We want to be there, we could not do that.
"The next week will be tough with Arsenal, Everton and Chelsea.
"I know the challenge is big. If we want to go up as a club we have to accept that challenge."
What it means
City stay four points behind Liverpool in the race for the Premier League title - but Jurgen Klopp’s side could move seven clear tomorrow evening when they take on Leicester City at Anfield.
The Blues have now dropped 16 points so far this season, two more than we managed throughout the whole of the last campaign.
City host Arsenal on Sunday in another key Premier League encounter. That game kicks off at 4.30pm.