Is hugging sexual contact

Yes, it can be considered sexual contact. It also can be considered sexual harassment when the hug is unwanted.

No and Yes, it all depends on the person doing the hugging. It may be just a way of feeling a physical closeness with another person that is comforting but has no particular sexual connotation, However that opinion can be contested by the frequency of a male child getting an erection as a result of a motherly or even fatherly hug. So one would probably have to say that it depends on the person doing the hugging and also on the person being hugged and the feeling that each gets from it. I have certainly had a sexual feeling from a hug unknown to the other person and at other time not.