Neuer claims his side were no match for rampant Roja.
Carles Puyol's 73rd minute header was enough to power Spain past the Germans, who never looked like the team that beat Argentina 4-0 in the quarter-finals.
"It's a big disappointment for us. We could have won but we didn't, but this is football," he told the press after the game.
"Now we are in the third place play-off, but we would have preferred to be in the final."
Neuer, who was helpless for the goal, said his side just didn't do enough to win the game.
"We had little courage and little chances, we attacked more in other games, but we have to look forward now," he added.
"Spain left us little spaces, and had lots of chances, they deservedly beat us. I wish them the best for the final."
The 2010 World Cup is finally upon us, so keep up to date with all the news at Goal.com's World Cup homepage and join Goal.com USA's Facebook fan page!