Their defeat to Tottenham marked a fourth league loss in seven games, leaving the Gunners languishing in 15th spot on the Barclays Premier League table, and the Frenchman desperately tried to find a positive from their failure at White Hart Lane.
According to reports in talkSPORT, Wenger said: "We will come back. You could see again today there is a strong strength in the team but we have to become a bit more realistic and do the job better in some situations.
"Our defence becomes stronger in every game, we lost some balls in the final third and we could have done better with our passing. It is down to a lack of confidence.
"I believe we have a strong team and when we get our confidence back the team will be stronger."
The Frenchman also claimed that Spurs' first goal should not have been allowed to stand because Rafael Van der Vaart handled the ball before unleashing the volley that put the hosts ahead.
He said: "It's frustrating because the first goal was handball and I wonder what the linesmen do in these situations. It's a second yellow card as well, because he already had a yellow card."
"We played with the handbrake on in the first half," he added.
"But at half-time we came out and had a go at them and normally got back to 1-1.
"But then we didn't push on enough and let them get back into the game. That shows we are not playing with confidence at the moment. We want to protect our result too much when we have one", the Frenchman fumed.