What does it mean if a guy doesn't put a label on your relationship?

Anonymous
So me and this guy met at college and have known each other for a year now. Since then we have been talking constantly in person/text etc. We haven't hung-out much till recently due to our studies. However, lately he seems to want to hangout more often, most of the time one on one.

The other day when we were out he introduced me to an acquaintance (a girl), but he struggled putting a label on our friendship. I mean id assume he could've said 'my name' is a friend or something but he couldn't, instead he was silently for a few seconds and just said that we met at college and study together.

Why would a guy do that, if he can't put a label am I just seen as an acquaintance or what?

More detail:
We do hug each other when we meet and its not the kind where you keep a distance between the bodies. Its full front body touching hug and sometime side hugs. I have met his friend and we've hung out together as well.
What does it mean if a guy doesn't put a label on your relationship?
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