Torres was criticised for his scattergun display.
But Hodgson said: "Fernando came into the centre on a few occasions and, when he did that, he caused havoc.
"You've got to give the back four of Birmingham credit. They worked very hard to contain him and pressurise him.
"But he is looking much fitter with every game and I thought he looked dangerous and I thought, the longer the game went, the stronger he became.
"I think he is working hard for the team. He is a constant thorn in the side of defenders.
"We know he lacks match training. He missed matches at the end of last year and during the World Cup.
"But I'm not at all concerned about Fernando Torres. He will get better and better."