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He has termed the first seven games "slightly disappointing" but can see why things can improve.
Albion have nine points after drawing at rock bottom Wolves.
But they have impressive wins over Chelsea and Manchester City to their name.
Asked how he assessed their start to the campaign, Milner told The Argus: "I think slightly disappointing for me for where we could be.
"We have shown we can beat anybody on our day. We have that ability.
"The next step for us, which is normal for a team striving to get to the next level, the biggest thing is obviously consistency and that is something we haven't quite got right yet.
"That also goes with young players as well.
"We've got a lot of young players, we signed a lot of players in the summer.
"So there are reasons for that.
"It's not excuses. There are reasons why we haven't made that next step we would like to take.
"But we are all aware that is a step we need to take."
Milner is positive about where Albion stand as they pause for an international break, then face Newcastle at the Amex.
And he says they are good enough to improve their points haul.
He added: "It would be more difficult the other way, if we didn't have the ability to put in performances that we know we can and beat everyone on our day. We know we can do that.
"It's not an easy step to take by any means, showing our best level nine times out of ten.