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Yes, but it changes displacement according to fan speed and pressures. "Variable displacement". This is good though - you're not running the compressor at full displacement all the time and cutting it in and out with a compressor clutch that wears out down the road.The compressor on the non-auto temp versions runs at full tilt all the time.
Also keep in mind that the coldest temp setting is auto recirculate. One notch up = fresh air. The recirculate button itself does nothing when the dial is set to max cold.
I definitely get lower MPG in town running my AC, but that's because the car has to work much harder. I usually turn it off to merge just so I don't have to floor it to cut it off. However, my comfort is a much bigger priority for me than MPG, and I love A/C.
On the highway, I notice little difference in MPG having the A/C on vs windows rolled down.