Perusing the Ford Owner website, under "fuel efficient driving tips" I read:
"Stay in gear when stopping
While shifting into Neutral and coasting to a stop sounds like it would save fuel, the opposite is true: Many modern fuel-injected vehicles go into a 'fuel cutoff' mode when the engine senses that the vehicle is in gear, the rpm is above idle, and the throttle is closed. Shifting to Neutral may cancel that mode, so keep it in gear."
The Manual for my Automatic Mustang had this statement which says basically the same thing,This statement was in the section of the manual about the Automatic Transmission
Your vehicle has been designed to improve fuel economy by reducing
fuel usage while coasting or decelerating. When you take your foot off
the accelerator pedal and the vehicle begins to slow down, the torque
converter clutch locks up and aggressively shuts off fuel flow to the
engine while decelerating. This fuel economy benefit may be perceived
as a light to medium braking sensation when removing your foot from
the accelerator pedal.
However I could find no similar statement in my Fiesta Manual, neither in the general Fiesta Manual nor in the ST addendum
So I decided to test, a long downhill run, I let it coast in 6th gear, foot off the accelerator, the instantaneous MPG readout on the dash is 99MPG
I shift to neutral, car speeds up a tad, MPG still 99
HOWEVER, with an OBDII adapter connected and reading instantaneous MPG using the Torque app on my phone there is a difference.
When coasting in 6th it reads 106MPG
When coasting in Neutral, it reads 150MPG
So it seems that coasting in neutral, at least with a manual transmission, is more fuel efficient.
I imaging it would not be possible to completely cut off the fuel for any car with a manual transmission,
if the fuel was cut off, and you shifted into neutral, the engine would stall.