United lost 1-0 to Aston Villa on Saturday at Old Trafford, after a goal by Gabby Agbonlahor.
“The competition is of a higher standard this year,” Phelan said. “There are a lot more good players about and plenty of good teams who are very well organised.
“There is nothing easy and every team will drop points. Nobody likes to lose but last week we were five points behind Chelsea, now it is three, so in that respect we are a little bit better off.”