A sign of diminution (5)
I believe the answer is:
minus
'a sign' is the definition.
(minus sign is a kind of sign)
I cannot understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for minus that I've seen before include "Deprived of" , "Lacking; negative" , "Lacking; below zero" , "Negative sign - negative thing" , "Take-away (sign)" .)