This is absolutely NOT CLEAR that you should not be in neutral if you want to minimize fuel consumption. What you said is technically true (a manual trans car in neutral is being fed fuel to keep it running) and if you keep it in gear with your foot off the gas DFCO (Deceleration Fuel Cut Off) kicks in .... but only under very specific circumstances (RPM's have to be at a 'high' level, foot off the brake). Every car has a different DFCO cut-in profile so it's hard to generalize but .... The only time you want engine breaking is if you are coming up too fast to a red light or stopped car (if you're worried about fuel consumption you already F'd up, in that case) or you're pushing your car around corners and it's good to have engine braking (in this case you don't care about fuel consumption). For lowest fuel consumption you pop that baby in neutral and coast for as long as you can (and piss off all the drivers behind you).