From CNN:

"John McCain went on television and said that there has been quote "great progress economically over the last seven and a half years," Obama told a Pennsylvania crowd. "John McCain thinks our economy has made great progress under George W. Bush. Now, how could somebody who has been traveling across this country, somebody who came to Erie, PA, say we've made great progress?"

The McCain campaign immediately took issue with the comment, noting the Arizona senator also said he knows families are facing "tremendous economic challenges."

“American families are hurting and Barack Obama is being recklessly dishonest," McCain spokesman Tucker Bounds said. "It is clear that Barack Obama is intentionally twisting John McCain's words completely out of context. Obama is guilty of deliberately distorting John McCain's comments for pure political gain, which is exactly what Senator Obama was complaining about just yesterday."

Have to love that last part. What did Obama say yesterday about digging the knife in a little deeper?

UPDATE: Here's video of Obama earlier today: