This is normal on my manual 5 speed 2005 Forester.

My 1996 Ford Ranger with automatic would hold the speed more closely but it
would use full throttle and downshift to do it which does not help with fuel
economy much.

When going downhill the only slowing affect is engine braking, which in
overdrive is minimal, so I have heard of cars with automatics that downshift
to maintain speed when using cruise control.

The Forester has less wind drag than the Ranger & Explorer so it will coast
downhill faster.

Blair

I've had some success with this on two vehicles, my OB and a Mercury
Villager. On top of the carb/fuel injector thing whatever it's called
now there are two throttle cables, one goes to the accelerator pedal
and the other goes to the CC controller. Remove the play from both
these cables, just like adjusting the brakes on a bicycle. The cruise
should set right where you hit the button. It might or might not help
the overshoot, but it can't hurt.

-John O

My 2006 Forester manual does the same thing.  My old 97 OBW
and current 02 Passat hold the set speed batter than the
Forester.


--
Vic Roberts
Replace xxx with vdr in e-mail address.