Villa's plight was made worse on Monday night when they were narrowly beaten 1-0 by reigning champions Manchester City at home but manager Lambert feels there is still plenty of positivity around as the 18th-placed Birmingham club attempts to remain in the top flight.
"It is," he told Sky Sports when asked if confidence is still intact.
"We played well at Arsenal last week and didn't get anything. And we were well it in here against a very good side vying for the title.
"I couldn't ask for any more in terms of effort. We wanted to create more chances but we were in the game against them. They're on another level from us at the moment.
"We've got to compete with the teams around us and if we keep playing like that we'll win more often than not."