Goals from David Silva and Sergio Aguero secured victory for the Premier League champions at St James' Park, but it was an evenly contested encounter.
While Newcastle did not carve out many good chances, they put City under pressure at times and there were good displays from summer signings Daryl Janmaat, Jack Colback, Remy Cabella and Emmanuel Riviere.
Rolando Aarons and Ayoze Perez also impressed as substitutes and Pardew was disappointed not to take anything from the match, but had plenty of reasons to be positive.
He told Sky Sports: "It was frustrating for us because in the second half we really pushed on up and put some younger players on, who were a bit naive at times but who threatened with their pace. We just couldn't get that equaliser.
"I feel that if we could have got that then we could have gone on to win it because we looked like we had more legs in the team.
"We were brave, we went for it and there were some outstanding performances. All the players were solid and Remy gave us some moments around the box that we haven't had for a long time."
Pardew added: "There were a couple of times when we broke down today and perhaps rushed it, with people not understanding Manu's (Rivieire) runs, but that will come.
"But it was a really good team effort against, let's be honest, real quality, and the quality won it today.
"I was pleased with a lot of the aspects of today's game. The defence was solid and the crowd were magnificent."
Asked whether there could be further arrivals before the transfer deadline, Pardew indicated that he was happy with his squad but would keep an open mind.
He said: "We've watch the market but we've got a much bigger squad and we have some nice options."