England went into the match with just four recognized bowlers in Steven Finn, Boyd Rankin, James Tredwell and Ben Stokes. Morgan had won the toss and elected to bowl first but the decision looked a poor one as Australia amassed a total of 315 for seven.
Australia captain Michael Clarke scored a 102-ball 105 and was well supported by George Bailey, who scored a quick-fire 67-ball 82.
England, despite a maiden ODI half-century from Jos Buttler (75) and further half-centuries for Kevin Pietersen (60) and stand-in captain Morgan (54) were never in the hunt as they lost with nearly six overs remaining.
England were dismissed for 227 as Australia went 1-0 up in the five-match series following Friday’s washout in Leeds.
England are without the likes of Alastair Cook, Ian Bell, Graeme Swann, James Anderson and Stuart Board as they wanted to rest their Ashes 2013 heroes. But by doing so they looked understaffed.
However, Morgan said: “Regardless of the (balance of the) side, if you get after one or two bowlers, it makes it difficult.”
“I don’t think we were a bowler short, but we weren’t particularly happy with our bowling performance. I’m not concerned by the balance of the side. We have a lot of bowling options. Not enough people put their hand up today (Sunday),” said Morgan as reported by BBC.
Morgan also defended his decision to bowl first. “I don’t think I would have changed my decision to bowl first,” he said.
“Regardless of what we did first, we didn’t restrict them enough — 300-plus on that wicket was above par but it was well within our capabilities and we needed someone to lead from the front at the top of the order. That didn’t happen.”
But Morgan insisted his youthful team could bounce back in the third match of this series at Edgbaston on Wednesday and that there were also wider issues for England to consider in developing a squad capable of winning the 2015 ICC World Cup in Australia and New Zealand.
“With a particularly inexperienced and young side, the guys are learning,” said Morgan. “We are certainly looking at the bigger picture with these (young) guys.”
“It’s certainly not short-term. The type of characters they are, we expect them to deal with this and bounce back on Wednesday when they’ll have another opportunity to do well.”