Liverpool's underlying numbers have been really poor, as have large portions of their performances. So far they've found no real use for 100 million pound Wirtz. Their defensive organisation is poor, and their game out of possession looks to have regressed massively since last season. In short, they are currently trending in the wrong direction. None of that is to say that they won't improve, I'm sure they will. But they're miles from being the formidable side that people assumed they'd be because they spent a lot of money on Wirtz, Isak, and Ekitike.
It's far too early to be writing City off as genuine challengers IMO. We're trending in the right direction, and more importantly, we've recovered a lot of the intangibles that made us record breakers so often. It's also worth remembering that in almost every title winning season we've had, there's been moments before the turn of the new year where the same people same have said the same stuff about our general play not being good enough. The truth is you need consistency of results. Consistency of performance comes later.