No fuel is used, but air is still pumped through the engine.
I will explain myself clearer.
I am an mechanical engineer, but I did not design any engine or something.
Not using fuel
The engine will not be using any fuel, when the engine is spinned around by it's own kinetic energy. So when you are braking on the engine....coming from high revs. to low revs. the engine used energy that the car has from movement. (thus increasing braking)
(dipping the clutch isn't working)
Ok I have understood that the new engines let say late 1990's are able to shut down injection totally when the above is happening.
This is for economic reasons.
The sound of the exhaust
Because the engine isn't using fuel it doesn't mean the engine isn't using air or moving air. The engine exctually works like a pump. Inhaling air...and pressing it out. (this motion is using the kinetic energy that the car has from movement) The air is blown into the exhaust that is why you will still hear it. It won't be so loud as on full throttle ofcourse, but that's obvious.
On tuned cars the total shut down of injection could be made undone, so then you car is still using fuel, this makes the exhaust pop. (unburnt fuel in exhaust)
Hope this is clear. Ofcourse there will be any fault is my story, but I believe the biggest part is true. I'm only an engineer.
PS. sorry for my bad English as I am Dutch