Two goals from Raheem Sterling and further strikes from Aymeric Laporte, Rodri and Phil Foden condemned Newcastle to their heaviest defeat of the season.
The match saw Kieran Trippier mark his return after almost three months out with a fractured metatarsal. The right-back replaced Emil Krafth and played the final 25 minutes at the Etihad Stadium.
Although Trippier was pleased to be back out on the pitch in the Premier League, the atmosphere amongst the players was one of frustration and dejection following the full-time whistle.
But the England international was still quick to point out the positives.
"It is [a good sign],” Trippier said about his teammates’ disappointment. “You [local reporters] have been here longer than me but you see the way results were going before Christmas, it wasn't going too well.
“It just shows signs of players developing, showing a winning mentality. The lads are disappointed, we've just been beaten by one of the best teams in the world and we're coming off frustrated which just shows the steps the club and the team have taken.”
Newcastle have won 10 of their last 16 Premier League matches to climb out of relegation danger. But after picking up consecutive defeats against the division’s top two sides in Manchester City and Liverpool, they will be hoping to end their St James’s Park season on a high against top four chasing Arsenal on Monday night (8pm kick-off) – a game Trippier will be hoping to start.