These MPG figures on the dash tend to be horrendously optimistic, but worse on the TDI's than the petrols.
I get 37MPG on a filler-neck brim figure from my 10v petrol, and that tallies with a dash figure of 39.5MPG
The TDI was born to lie (there is a factor-modifier figure in the MSA15 control software!) so a dashboard figure of 63.2MPG on a long run is only achieving 55MPG, but that is fairly consistent for the roads around here.
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1998 V70 2.5 10v petrol
1997 V70 2.5 TDI
2004 V70 2.4 B5244S Auto
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