Celtic led on three separate occasions throughout the 90 minutes and despite being unable to come away with a victory, the performance pleased Rodgers to a degree.
"I was disappointed by the goals we conceded," he said.
"We can analyse them and the first one was from a mis-hit shot (from Fernandinho) but with the other two, we could do better
"Apart from that, the performance of the team was absolutely outstanding. To perform like that against a team like Man City, it was an incredible performance.
"They have travelled around the Premier League and destroyed teams, hence the reason people thought it was going to be a hugely difficult game for us.
"Tactically if you are not organised against this team, they can really hurt you.
"There is no doubt that was a big performance from ourselves, it was a big step forward for us as a team in terms of our improvement."