The Red Devils were badly beaten at the Etihad Stadium on Saturday afternoon when goals from Rebecca Knaak, Bunny Shaw and Lauren Hemp condemned them to a 3-0 defeat.
It was their second successive defeat in the WSL after defeat to Aston Villa last weekend, which was a huge blow to their title ambitions. They remain third in the table, seven points behind leaders City after nine games.
Man Utd boss makes transfer request after loss to Man City
Skinner believes United can still mount a challenge, but only if they improve their squad in the transfer market when the window opens again.
“We’ll see at the end of the season,” he told BBC Sport. “I still think you can catch them. I don’t see anything special about them.
“They are very good on the front line and can punish anyone, but I think you can catch them. I think we have to close a gap.”
“What we need to do is use the winter period to recruit the people we need to support this team.”
Asked if he has any transfer targets in mind, Skinner said: “Certainly, I have targets all the time. I think we will continue to clear them.
“Hopefully we can bring in players who will just adapt. We need adaptation. If I could have brought that in earlier, I think we could have turned the game around, even at 3-0.”
Read – Power Rankings: Inter up, Manchester City storm in again
See also – Five forgotten England internationals in need of January moves
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